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

To: PAL who wrote (137092)	7/20/1999 6:35:00 AM
From: TechMkt	Respond to of 176387

The Nasheville city council is scheduled to vote TODAY on the $200 million tax break for DELL, and the whole deal in general. I understand that this is a pivotal day for the whole TN expansion project. If any DELLheads in TN, or any other place, find out the results please post them for all of us. Thanks. Fez

To: PAL who wrote (137092)	7/20/1999 7:26:00 AM
From: GVTucker	Read Replies (3) \| Respond to of 176387

PAL, RE: DELL and options Since when an equity option is a European style option? These are over the counter options, not the exchange traded variety that you are probably familiar with. DELL sets the structure and terms of the options, including the method of exercise (American or European). The trade is executed with another institution that needs or wants a long position in puts, and likes the idea of being able to buy them cheaper than they would have otherwise done on an exchange, even though that institution gives up the right inherent in an American call. This also goes to your next question: Since when does a seller of a put option have the option of net-share settlement ? The only option a seller of a put has is to buy it back to close the position. Once again, the terms were all set by DELL, so if that's the way they wanted it, that's the way they got it. Note that this is not a special deal for DELL. Most institutions that deal in high volumes of options will tend to use over the counter options so that the contracts can have a custom structure. And the investment bank that creates these contracts is more than happy to comply, because an OTC option will give them a little extra fee income.

To: PAL who wrote (137092)	7/20/1999 10:32:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

PAL, I am guessing that these puts were private placements. I agree that the verbiage indicates that the puts expired out of the money. TTFN, CTC

To: PAL who wrote (137092)	7/20/1999 7:58:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

CTC, These European style puts are very interesting. A company could sell deep in the money puts and have them expire out of the money if the stock price continues to appreciate. The company could buy out the money European calls and then exercise the calls at expiration when the presumably they are deep in the money. By selecting a calendar spread the stock buyback could be precisely timed in advance. If the company stock does not perform as expected then the option buyback strategy could be modified by repurchasing puts and selling the associated calls. There would be no premature exercises of the calls or puts. These are very flexible buy back instruments.