Dell Technologies Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc.

DELL 122.55

+4.4%

Nov 21 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Lucky Joey who wrote (96504)	2/10/1999 9:19:00 AM
From: edamo	Read Replies (1) of 176387

depends on the issue and if i want to hold, never can lose taking a profit..if you are going to buy back,the best time is close to expiration, when the leap (now a short term option) is in parity with the common, the time premium has eroded...if you do buy back it will increase your cost basis by the amount of the option less the original premium.....hypothetical case buy dell common at $100....sell jan 01 call and get $40...your cost basis is $60....come jan 01, if dell is at $150 on expiration day the option is worth $50...buy back @ $50, add this to cost basis of $60, and your new cost is $110..with the common at $150...remember the buyer of the leap today who is giving you a $40 premium (if he holds till expiration)does not have a profit until the stock is above $140....buying options are ok, if you trade out with a profit...holding a long position is ok if the stock has had a strong run, or you may want to exercise...

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next