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Technology Stocks : Dell Technologies Inc.
DELL 138.940.0%Dec 5 9:30 AM EST

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To: SecularBull who wrote (55816)8/3/1998 6:16:00 PM
From: tsyl  Read Replies (1) of 176387
 
I too disagree with Mr. Spaulding...

Seems to me he sounds like a theorist and not a practioner of options trading.

The sublties and complexities of options can be expressed as long, confusing mathematical equations. Let keep it simple on this thread.

An option can go down, "a little" in value, even if the stock price goes up. It happened today with the Dell Sept 120's. They were down 1/2 when the stock price was up 1/2. Ive been told by a trader on the Pacific exchange that there exists no fundamental "pinning" of an option price to a stock price. After getting burned buying options on stock splits, I believe this to be true.

Nevertheless, for those of us lacking six figure brokerage accounts and therefore dont or cant go long, options can be very profitable. Ive experienced it firsthand.
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