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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: freeus who wrote (135558)	7/5/1999 10:03:00 PM
From: Ian@SI	Respond to of 176387

Lynn, You can always do what company managers do: Exercise the leaps; then sell enough shares to cover purchase costs and any capital gains taxes from the sale that won't be offset by capital losses. Ian.

To: freeus who wrote (135558)	7/5/1999 11:27:00 PM
From: TheGodfather (Hijacked)	Read Replies (4) \| Respond to of 176387

Does anyone here foresee anything within the next month which would drive DELL up to $50, or should I kiss my AUG $50 good-bye? br

To: freeus who wrote (135558)	7/6/1999 8:37:00 AM
From: Geoff Nunn	Read Replies (2) \| Respond to of 176387

freeus, re: exercising your leaps Given the revelation that your leaps are in an IRA it's a very different matter. The case for adopting B&H is much less compelling. The real advantage to B&H is that you postpone capital gains taxes, and thus have more capital working for you. This argument doesn't apply to an IRA of course. A second advantage is that you save on brokerage fees. Yet, that is becoming less and less an issue now that some brokerages charge as little as 1 cent per share on trades. All of which is to say that the rewards from B&H apply mainly to taxable accounts, not IRAs. Re: Please explain: selling covered calls on the stock:doesnt that defeat the purpose of having it: dont I want it free and clear? The suggestion I gave to write call options was meant as a last ditch way for you to raise cash, short of selling the stock. No question writing the calls will impose a ceiling on the stock's upside potential. I personally would want to hold the shares free and clear -- unless I held a large position, let's say one which dominated my portfolio, and in which case I would consider writing calls as a hedge. Good luck! Geoff