Edamo:
It is not for me to comment on specific trades, as I'm no expert on options. In fact, in normal times, I'm more comfortable either long or short, based on my take as to where a stock is likely to go based on its fundamental story and recent trading behaviour.
I would agree with you that most of the time, it is the seller of options who wins, but these are not normal times. I am among those who think we are in a mania. That being the case, the heights to which stocks can be taken before some form of reality sets in, is not definable by mere mortals, hence options make sense, to me, particularly D-O-T-M options. I just want to be there when the worst of them blow up. A good example is Micron, where options were purchased by many for quite a time before the axe finally fell. Now, of course, those put buyers are up multi-bags, including the early expired purchases.
Dell's stock is vulnerable. Recall that Michael promised to re-acquire those lost sales, even if the margins had to be sacrificed. if he were to drop a clanger on the market, the stock could really take a pounding.
Best, Earlie |
