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Technology Stocks : Dell Technologies Inc.

DELL 117.79

-1.4%

1:57 PM EST

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To: Craig Lieberman who wrote (111790)	3/24/1999 5:06:00 PM
From: edamo	Read Replies (1) of 176387

craig...selling puts... never violate two basic rules: 1)have the capacity in cash or margin to accept should it be assigned 2)only sell puts in the underlying you want to own use your example...8500 cash write put get 4800 premium...return is 56% (chuz..cover me on this one)...or 30% per annum...better than a stick in the eye...what is your risk...if you allow to expire with stock below 85 but above 37...you're in the money...below 37...you roll forward and accrue added premium.. to unleash the max dynamic take the 4800 and go long 125 shares dell build a portfolio, can write covered call on the shares you bought and spiral your capacity up... large long positions can be accrued by this method...only consider stocks with strong fundamentals...which leaves out most of the momo internet issues...dell, intc, msft, good to start with.. don't have to be a pro...just logical and intelligent enough to know when to sell the put, as it is not a random act...good luck, ed a. p.s...remember margin debt is fixed cash out of your holdings...put selling is cash in...

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