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Technology Stocks : Dell Technologies Inc.
DELL 127.22+3.8%3:59 PM EST

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To: SecularBull who wrote (71791)10/13/1998 4:53:00 PM
From: jim kelley  Read Replies (1) of 176387
 
Long,

It looks like LT does not understand that DELL is willing to pay the strike price for the put options they sell. When these options are exercised DELL gets the stock for SP- Premium. The premiums are considerable so they are getting a very good deal on the stock.

Also, they are not selling short term trading puts but longer term for their stock buyback plan Tthey pocket the volatility and time premiums at the outset. It a great deal for a company that can plan ahead.

Regards,

Jim Kelley
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