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Technology Stocks : Dell Technologies Inc.

DELL 127.22

+3.8%

3:59 PM EST

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To: Michael Bakunin who wrote (117471)	4/14/1999 2:49:00 PM
From: edamo	Read Replies (1) of 176387

michael..always sanguine..you fail to incorporate implied volatility factor in the equation... this alone causes an aberration in premium, sometimes for a fleeting moment..and in fact the premium will drop even as the common does...contrary to what you think a put premium does....feb 17, was max iv dayfor dell...nowhere near it now...stock down four from that day, premiums less...go figure.. i only sell that which i want to, and have capacity to own...i've got 80 x 01 60 sold on 2/17 with a 208k premium...stock down 4 points, premium down 1...in the money...i'm sanguine because by time of expiration, 03's will be out...put selling is extremely bullish and aggressive..you may make your short term profit...i may much more long term...i'm underwriting you...and we can both win..but the seller loses no more than if he went long the common..if i would have bought 8k shares dell on 2/17...it would have cost 340k, today have paper loss of 32k...selling puts, i receive 208k..could close today and make 8k...it's a beautiful thing up or down!

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