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Technology Stocks : Dell Technologies Inc.

DELL 129.98

-6.2%

3:59 PM EST

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To: Bretsky who wrote (120192)	4/22/1999 9:25:00 PM
From: Mike Allen	Read Replies (1) of 176387

To Bretsky: Options on Dell. I have played the options on Dell for a little while now and suggest buying calls on dips and basing periods such as the one we're in now. Pick a good target. For example, I have been averaging into Aug. 50 calls for several weeks. The idea is not to buy them all at once as you'll be fooled more often than not and the share price will drop a little further. If you pay $5.00 for a contract and the stock goes up it may be worth $7.00 before you know it. Then a couple of days later you look and it's back to $5.00. I resist buying more when it drops back to somewhere around my average. If it drops to $4.00 or $4.50 I'll add to the position. Sooner or later Dell stock takes off and leaves you with your final position of X amount of contracts. Make sure you buy out at least 6 months, and always buy contracts that expire in one of Dell's earnings months. Feb., May., Aug., Nov... Move out of them a week or so before earnings. This is the volatility play on Dell, but never sell your regular shares. They will be worth 10 times more in a few years. Oh yeah, buy Dell leaps anytime, but they are a really good deal in these basing periods. Good luck.

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