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Technology Stocks : Dell Technologies Inc.

DELL 128.70

+5.0%

10:43 AM EST

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To: Don Martini who wrote (87429)	12/31/1998 3:28:00 AM
From: space cadet	Read Replies (1) of 176387

Hi Don, I was interested in your comments that >Also, if you've sold covered calls that are deep in the money they can be exercised early too. I sold Feb 10Cs on CKFR which is 22 3/8 now. The call is trading below parity, so it may be exercised any time, but with 6 weeks remaining I expect the buyer to hold on for additional gain. What can I do? Sell Aug 22 1/2 straddles to pay for the 10Cs and upgrade sale of the shares by $12.50 ... Free Deal! If the shares close below the strike I can roll out the puts to another straddle for another 50% gain! Same applys if the call is in the money.< I'm not sure I understand. Can you explain exactly what you mean by the Aug 22 1/2 straddle and the 50% gain. Perhaps an actual example. Also what do you mean by >Same applys if the call is in the money.< Also, from my experience it is more common to have puts you have sold exercised on you compared to calls. Calls tend to hold their time value much better unless they are very deep in the money. Only puts I have sold have ever been exercised against me early. I agree rolling out to a later month is one possible solution...

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