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Technology Stocks : Dell Technologies Inc.

DELL 127.22

+3.8%

Nov 24 3:59 PM EST

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To: divvie who wrote (73777)	10/22/1998 10:14:00 AM
From: ViperChick Secret Agent 006.9	Read Replies (1) of 176387

Divvie i cannot give you specifics since I dont recall exactly so you will have to pull up a chart you can get charts on options at quote.com but the prevailing thinking was this I will buy some options and make some money on the RUN UP to earnings....because in the past it has done this well last earnings it did not do this and in fact it dropped... so you know that there is Volatility and Time premium in an option so as dell was dropping you were losing on Time premium (probably Volatitility, as well) and the accompanying loss due to price drop of stock so it depends on when you buy and what you buy the month of your option makes a difference..obviously if you are further out it holds up a little better.... the moral of the story is..... dont buy now expecting a run up because of earnings...it did not happen last time.. and it can no longer be accepted that Dell is going to run up into earnings...it may...but it isnt the same RIGHT NOW as it has been in the past..However, the overall market conditions were different last earnings.. some people like to buy options prior to earnings and then sell before because they strip to the premium... you know that the common saying is that the writer of the option makes the money....BUT....there are those that think this last greenspan announcement prior to options expiration was to save some of those writer of options.......entirely plausible option playing is a TOUGH TOUGH GAME.. if you want to see a nightmare that happened to someone...you can check Robin187 play on Dell...I am sure the emotional havoc was far worse than the big financial loss

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