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Technology Stocks : Dell Technologies Inc.

DELL 119.41

-2.7%

Nov 19 3:59 PM EST

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To: SecularBull who wrote (112200)	3/25/1999 11:33:00 AM
From: edamo	Read Replies (1) of 176387

LoD...re puts...long be nimble...long be quick... october 8 wipes out margin accounts, but such a catastrophic day is a gift for "NIMBLE" put sellers.... if you have to cover the position, the roll out to a farther expiration incurs an inflated premium due to a temporary manic volatilty perception...you've reset with same strike, more cash in,more capacity...added opportunity.. and if your issue has died, as paul and don have so aptly "put" it...roll to another issue with a dynamic...much as you would trade out of the underlying, providing the death certificate has been officially issued... your access to cash deep in a correction is less risky than tapping margin...because the volatilty which gives you max premium and the drop of the underlying are in concert...if you have the ability to tap margin in a downside move...you have the same capability to sell puts against the same margin capability...only difference no margin loan to worry about...if you're on margin and the drop continues..good bye...if selling puts...just keep on rolling until your cost basis is naught..... the strategy actually best when times are bad....better initial posture...and when times eventually turn good, look out! good luck, ed a.

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