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Technology Stocks : Dell Technologies Inc.

DELL 129.98

-6.2%

3:59 PM EST

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To: William C. Spaulding who wrote (58126)	8/13/1998 6:54:00 PM
From: tsyl	Read Replies (1) of 176387

Mr Spaulding... Dont forget Dell's stock performance following the last split (initially during better mkt conditions). The split was announced around $113-$118. Within 2 weeks the stock traded in the vicinity of $140, before the so-called "Tech Wreck" pulled the price down considerably. To some extent I have capitulated ( popular term currently) regarding many of your posts. You do seem to have an understanding of options and their behavior. Yet Im in a conundrum over your recent advice to an options trader who posted a question regarding his Aug call position. You state that he will see significant price erosion IMMEDIATELY following the earnings announcement Aug 18th. The logic behind this opinion, if I understand you correctly, is that the "play" will be out of the Aug options given their very short time horizon hence low volume, poor volatility, etc. If this argument is correct, then outside of the predictable premium erosion of Sept options, would not the Sept's increase substantially within the same time frame due to option buyers moving out of Aug options, thus increasing Sept volume, volatility, etc. Of course, this discussion is about a pure play. Not about mkt conditions nor about what you feel may happen to Dell following earnings. Eagerly Awaiting Enlightenment

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