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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: Dr. David Gleitman who wrote (113358)	3/30/1999 8:48:00 AM
From: edamo	Read Replies (2) of 176387

dr.david...re dell may 60 calls the risk in call "buying"...if i understand you...(correct me if i'm wrong)..you own 120 x dell may 60 (dlqel @ about 1/4)...that you paid 450 contract...cash out 54k...present value 3000...sizeable short term loss, which will be difficult to recover unless dell closes at 64.5 in may..break even...time is against you...was your initial position set to excercise or trade the option?...do you have the capacity at some point in time to buy 2000 shares dell @ about 34?...if so to repair your position consider selling 20 x dell 0160 puts (zdeml) @ about 25-26...sell your calls and you end up with a short term tax loss, and recoup your initial capital, which you can go long with...in dell common, or leverage with dell jan 17.5 thru 25 range calls...premiums very skinny on these at the moment...buying calls as you did is sometimes profitable, but usually risky should movement direction change...my preference is to buy deep in the money calls, use as a stock replacement, with the thought in mind to excercise...less percentage gain...more conservative...point by point movement with the underlying...some premium left if wrong...think it thru...you are trying to repatriate capital...not always easy...good luck, ed a.

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