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Technology Stocks : Dell Technologies Inc.

DELL 122.55

+4.4%

Nov 21 9:30 AM EST

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To: JBird77777 who wrote (97013)	2/11/1999 12:23:00 AM
From: BGR	Read Replies (2) of 176387

JB, With all due respect, I strongly recommend that you use the deltas. They are there for a purpose; the arbitrage and risk management arms of every single brokerage house uses those to hedge their portfolios. For the 120 '01 calls, the delta is about 0.639 (as given by the CBOE options calculator), thus the percentage increase for a 10% move in equity (100-110) would be about 20% (32-38). A cardinal rule in option trading is that if you trade options you have to understand and use the (so-called) greeks; trying to approximate the greeks is dangerous for the trader's financial health. Besides it is mathematically provable that the percentage movement in any option is going to be more than that of the underlying equity. Options are always leveraged. You may want to try Options, Futures and Other Derivatives by John Hull for further details. Best! -BGR.

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