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

To: GVTucker who wrote (137096)	7/20/1999 7:31:00 AM
From: GVTucker	Read Replies (3) \| Respond to of 176387

RE: DELL and European exercise Why does DELL structure their options with European exercise? The primary reason that DELL says they sell puts is to facilitate stock repurchase. If that was the case, then DELL would prefer American exercise, it seems to me. That way, there is a greater chance that DELL would be able to buy the shares back at the exercise price--and isn't that the whole purpose of the exercise? By selling European puts instead, DELL seems to prefer to pocket the premium income instead of buy the shares--or, at a minimum, DELL is trying to increase the probability of pocketing the premium income.

To: GVTucker who wrote (137096)	7/20/1999 8:06:00 AM
From: arthur pritchard	Read Replies (1) \| Respond to of 176387

gv:<custom over the counter options> gv I had not read your post to pal, in which i believe you make the point, that custom options are the norm, and not at all an exception, between institutions. If you don't mind, my question then is, are there many investment banking houses, with the capability to service an account as demanding as dell? Just out of curiosity, could you name a few? Thank you very much; this is very interesting to me...I guess I would also like to ask you whether you think dell's income from puts was an exceptional performance on the part of the investment banker involved, or has this been as high as it has been, due more to the dramatic action of the stock up through February...

To: GVTucker who wrote (137096)	7/20/1999 12:40:00 PM
From: jbn3	Read Replies (1) \| Respond to of 176387

Re DELL Corporate options GVT, 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. Greatly appreciate your reply, as it clarifies some points which have puzzled me for some time. However... it raises some more questions: 1. Do you know of a location which provides the status (Issuing company, number of outstanding contracts and expiration) of these options? 2. Or are they just grouped within the options data provided on the CBOE? 3. Do you know of a way to see when they are issued and expire? 4. Do you know of a way to find out which financial institutions are buying / selling / holding these equity instruments? 5. Could you define the term net share settlement in layman's terms? Appreciate your sharing. Thanks, DELLish, 3.