William:
Since you have been open and generous enough to share your considerable options experience with us, I would like to return the favor and share some advantages of staying long term in
Dell
From your post 11987 of Aug 8 1997 to JBN, you made 20k in one week on an options play, but were somewhat negative on LT Dell..
Assume you used ONLY the $20k and bought 250 shares of Dell at $80 share.
Today that is 500 shares at $108 , soon to be 1000 shares
Cost $20,000 Value $54,000 (Note*)Estimated monthly apprec. $5000, yearly profit of $60000 and providing a solid base to make venturesome options plays
In my case, IF I had managed to keep all the 550 shs I owned in 1996, it would be 4400 shares worth $482,000 with an estimated monthly appreciation of $44,000 and yearly apprec. of $628,000
And no tax to pay until some is sold....
NOTE * Dell stock rises rather consistently over the years at a rate of about $10/mon, 100 pts in 1997 even with a flat 2nd half, 66 points this year to date.Can be checked using historical(pre-split prices)
I did read your options posts last year and found some very useful ideas.Thanks and Good luck
Sig
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