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Politics : Ask Michael Burke

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To: jim kelley who wrote (41620)	12/31/1998 10:25:00 AM
From: Mama Bear	Read Replies (3) of 132070

" I sell a put at 70 and buy a call at 70 on the stock. It does not cost the treasury any money and it locks in the stock at the call strike price" "DELL uses Put premium money to buy the stock back anyway."" Umm, which is it? Do they use the put premium to buy stock or calls on stock? They can't spend the money twice. It also doesn't matter what they do with the cash after they get it, it's still income, and has to be accounted for on the balance sheet. Now, I will agree it won't increase EPS if they are turning around and throwing it away on calls. Instead of insisting you're correct, why not pull up the earnings statement and show us why you're right. Here's a link to DELL's Edgar page: edgar-online.com Barb

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