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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: Michael Bakunin who wrote (117539)4/14/1999 4:39:00 PM
From: David Harker  Read Replies (1) of 176387
 
Well, if anyone is stupid in their approach with a stock
that keeps going down (An assumption - I don't know Komatsu),
then of course they'll lose their money.

Read Ed's old posts - he describes his approach, and it is
brilliant, not stupid, as your example supposes.

He uses great quality stocks (you may disagree on that)
as 'inventory' which he can use to produce income. The income
is used to expand the size of his 'inventory'. The income is
from premiums collected via selling calls and puts.
He only sells a put/call when the price volatility of the option
is extremely high, due to extreme stock price fluctuation. He
collects that unusually high premium, and if he chooses, later
he can buy that put/call back, at a lower premium, keeping the
excess cash he collected when he sold it.

I've learned a great deal from Edamo, and you should consider
doing the same.
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