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Technology Stocks : Dell Technologies Inc.

DELL 133.20

+5.7%

Nov 26 3:59 PM EST

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To: Jeffry K. Smith who wrote (117972)	4/15/1999 9:06:00 PM
From: edamo	Read Replies (2) of 176387

jeffry..<ot> sold the puts at 14...had to buy them back at 16...puts were sold in 12/97 with cpq at 28...today cpq at 24...example of what once was good gone bad...didn't have to do a thing..could have waited until january and hope cpq above 26 (40-14)...or roll to cpq 0140, or wait a few weeks for 0240...decision that cpq has forward management problems..so used aol opportunity today on panic selling...wrote total of 15 aol 200 (300k of capacity) applied in my mind only 8 contracts (160k of capacity) to cover 40 cpq 40(160k of capacity) premiums from aol covered cpq buy back...aol however closed about 1.5 points below my sale(which was only sale of day on 01200)...my thinking is that when aol normalizes volatility, the premium will reduce by as much as 5-10%, even if stock goes lower exited cpq at paper loss...long term tax loss...set new position which zero out my paper loss..and added about 60k cash (remaining 7 contracts)...the 60k cash, again in my mind, gives me a bit of redemption for buying aol common at a high price...if aol moves back to 170-200 range, i will probably write leap calls and cover the puts..(stock up...puts down...calls up)..this is a very new position, i'm trying to learn the rhythm... i learn faster when i pay for the lessons up front...but that comes with experience....much like venkie and yhoo... you can only do this if you focus on few issues...you can watch real time trades for months and do nothing...but a day like today, or 2/17/99, or 10/9/98 or 10/28/97...comes along,the world is ending..and the door of opportunity swings open...good luck, ed a.

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