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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: BGR who wrote (117552)4/14/1999 9:40:00 PM
From: Joe Sabatini  Read Replies (1) of 176387
 
>>His is a lower-risk-lower-reward strategy

Yes, but if you can get some good-sized ups and downs on a stock (and a fair amount of lucky timing), playing the call options can be quite profitable. e.g. the Jan 2001 Dell 50 calls are going for around 10-11. Not bad. Only a few weeks ago, someone could have sold those calls for 18! You buy 'em back, wait for Dell to inevitably pop back up to 50 (probably further), and sell some more. That's my game. I need a certain comfort level, and with the covered calls, I get the best of both worlds IMO. And I only do this with the good companies, i.e. Dell, Mister-softie, etc. One more thing, I can be happy when the market is going up or going down... :)

Joe Sabatini
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