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Technology Stocks : Dell Technologies Inc.

DELL 140.63

+1.7%

Dec 10 3:59 PM EST

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To: Frank Ellis Morris who wrote (102090)	2/18/1999 8:49:00 AM
From: edamo	Read Replies (1) of 176387

dell jan 00 80 puts (symbol ldemp) selling put contracts is actually a moderate risk strategy if you have the capacity in cash or margin to accept the stock if put to you...it is used in upward trending issues and markets. the dell jan 80 put closed at $19 or $1900 per contract...worst case is that if dell is below 80 on third friday of jan 00, the stock will be put to you...but your cost basis is 61 (80-19)...so in reality if put to you you are in the money at 61+...if you bought the common today @ 80, and come jan it was @ 65 you would be -15 on paper...greater risk buying common if trend is down...if dell above 80, contract expires so all premium is yours... it is less risky to sell puts rather than covered calls in an uptrending issue... it can be used as a cash generator, which can be reinvested immediately...rather sell puts than buy calls in an uptrend stock, because cash in rather than cash out...a better, safer situation..

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