Dell Technologies Inc. Message Board

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Technology Stocks : Dell Technologies Inc.

DELL 133.18

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12:59 PM EST

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To: taxman who wrote (122128)	5/4/1999 7:33:00 PM
From: gizelle otero	Read Replies (1) of 176387

Re: <...i don't think you will be too pleased if dell goes to 60 and you either lose your stock or buy back the calls at a loss...> Yes, you can indeed have it both ways! Dell yields a very rich premium on covered calls. So rich that one can take a portion of the cash earned by writing the calls and buying more calls further out of the money. If you're assigned, it's highly likely that you'll be happy with the increase in value of the calls you purchased with proceeds from writing. As for the other "option", you can always roll up and out on your covered position, maintaining your long common position but at a higher strike, often without incurring any loss at all on the option trade.

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