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Technology Stocks : Dell Technologies Inc.
DELL 119.41-2.7%3:59 PM EST

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To: Patrick E.McDaniel who wrote (70119)10/7/1998 11:53:00 PM
From: SecularBull  Read Replies (1) of 176387
 
OPTIONS PLAYERS: There's a $4 difference in price between the 70 ($16 7/8)and 90 ($12 3/4) calls in Jan 2001. My advice: buy the 70s and sell the 90s as covered calls (using the 70s as your cover). On ten contracts, you spend $16,875, but bring in $12,750. For an investment of $4,125 net (pre commission) you get $20 in spread, which would be equal to $20,000 (assuming you get called on the 90s). If it lands in the spread (which we hope it won't be less than $90 per share in 2001), you're 70s are good and the 90s don't get called.

Just a thought.

LoD
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