Dell Technologies Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc.

DELL 122.70

+0.2%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: D. Swiss who wrote (65783)	9/16/1998 5:15:00 PM
From: SecularBull	Read Replies (2) of 176387

I have taken steps to reduce margin-to-asset ratios to a very safe level. I also re-adjusted my long term calls to at-the-money from deep-in-the-money, which brought cash in, and lowered the capital invested in the options. Unfortunately, I incurred a net $125K short term gain in the process (including tax losses I booked in other stocks/options). I considered hedging my equity position with puts, but decided that puts were unattractive and unnecessary. I may employ a strategy in 1999, whereby I short-against-the-box all of my equity shares in January, and buy at the money calls for January 2000 with the proceeds. I'll then close out the short before December 31, 1999, with either the calls (if the price is higher than it was when I shorted) or cash (if the price is lower than at the beginning of the year). I will have 100% downside protection, and only stand to loose money if I close out the short when the price is in the call spread. I think it's too late in the year to employ such a strategy for 1998 (the short has to be closed before the end of the year). Regards, LoD

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next