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Technology Stocks : Dell Technologies Inc.
DELL 122.46-8.5%Nov 17 3:59 PM EST

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To: Voltaire who wrote (82731)11/29/1998 1:44:00 PM
From: Geoff Nunn  Read Replies (1) of 176387
 
If nothing else take the Three Hundred or so million shares they own and write a COVERED CALL for one month, lets say for $5. That is only $1.5 billion. Get the point!

Sorry but I don't.

First of all, Dell doesn't "own" 300 million shares, or any shares for that matter. Dell owns assets, and the shares outstanding are a claim on these (net) assets. Outstanding shares are if anything a liability to the company.

As for selling call options on Dell stock, why on earth would Dell do that? That would essentially be placing a bet that Dell shares aren't going to appreciate. If Dell wants to pick up extra cash in the options market, it would make more sense for it to sell puts. This of course is what the company has been doing in recent years -- that along with buying calls on Dell shares.
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