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Technology Stocks : Dell Technologies Inc.

DELL 154.24

-0.3%

2:06 PM EST

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To: freeus who wrote (89762)	1/18/1999 5:36:00 PM
From: musea	Read Replies (1) of 176387

freeus, On the other hand, I would not have the DELL shares I have today were it not for margin. And pretty soon I will be able to pay off my margin if I want to and keep all my DELL shares. So, with care, its worth it. But I think letting margin go much below 50% equity is too nerve wracking and possibly asking for lots of trouble. I bought Intel on margin a few years back and I don't regret it at all. But I've never let my margin debt get anywhere near 50% equity. I've always maintained at least 80% equity. Leverage is exactly the right term - sometimes, you get to swing the lever (a good growth stock) and sometimes the lever swings you (like the Mexican crash of a few years ago). I know someone who lost a lot of good stocks along with Mexican telco stock bought on margin shortly before the crash. For those who want more leverage but don't want the risks associated with margin, you might look into call options or LEAP calls. I have several friends who have made a lot of money that way. My preferred way of doing LEAP calls on Dell is to actually buy the stock at the strike price on expiration. This plays into my buy-and-hold strategy and doesn't expose me to the taxman (yet). -musea

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