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Technology Stocks : Dell Technologies Inc.

DELL 140.77

+1.4%

Nov 12 3:59 PM EST

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To: Mike Gordon who wrote (82483)	11/27/1998 10:21:00 AM
From: robbie	Read Replies (1) of 176387

I don't mean to be overly simplistic, but as one pretty smart dog says, there may be less to this than meets the eye. I sell covered calls every month also, and it is clear to me that selling them every month results in a much higher rate of return than selling them six months out twice a year. One example - today the Dell Dec 65 call is bid at 3 1/8, while the May 65 call is bid at 11. Getting 3 1/8 per month will net me 18 3/4 for six months. Since 1/4 of the life of the Dec 65 has expired, while only one week out of 26 has expired for the May 65, the spread would have been even more in favor of the Dec call last week. I always sell my calls the day after the prior month's calls expire. Since I preceive the market to be overvalued at this time I am selling calls that are not as far out of the money as the ones I would sell normally. It's been working well. I'm raking in about 1k monthly for every 20k in my short-term account. I don't sell the calls on my long-term account. Hope this helps, comments/suggestions welcome. Robbie

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