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Technology Stocks : Dell Technologies Inc.
DELL 139.32-2.4%3:32 PM EST

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To: Dan Spangenberg who wrote (106294)3/2/1999 10:45:00 PM
From: JBird77777  Read Replies (1) of 176387
 
RE: Sale of a Dell Call to meet a margin call

I recommend the Jan. 2001 strike price 80, symbol ZDEMP, for the following reasons.

1. It is best that the option be out of the money, because your brokerage firm will deduct from your portfolio value any amount by which your (short) call is in the money, and this deduction would harm the margin calculation for your account.

2. For minimum loss in your portfolio value as the dell stock price recovers, you should minimize the ratio of the option's delta to the option price.

ZDEMP best fulfills these criteria.

JB
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