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

To: jmac who wrote (138252)	8/2/1999 8:57:00 AM
From: Rosemary	Read Replies (1) \| Respond to of 176387

jmac, Taiwan has calmed down. They backed off their original stance. Greenspan actually does us a favor, but right now we aren't too appreciative. So buying a far out call that doesn't cost a lot, could be a safe way to play Dell. You'll be set when we all come to our senses.

To: jmac who wrote (138252)	8/2/1999 9:41:00 AM
From: Sig	Read Replies (2) \| Respond to of 176387

Re Calls. <<You can play the upside on DELL for 2 3/8! >> No calls safe, but IMO you may get faster action today with INTC Aug 70 or CBS aug 45. But what will the market do with the economic figures due today? SES

To: jmac who wrote (138252)	8/2/1999 6:08:00 PM
From: William C. Spaulding	Read Replies (2) \| Respond to of 176387

Here's my take. The reason why the call is cheap is because Dell's volatility has declined greatly from former years, and that's not likely to change this year. While Dell is certainly selling more computers, it also has one of the highest computer stock p/e's. Stocks generally decline toward the end of August. Will the call options pay off? Maybe, since the strike price is close to the current stock price. However, consider the fact the option is expensive. If Dell stays below the strike--a good possibility in this market--then you will probably lose your entire investment. On the other hand, there's really nothing to boost the stock much in that time period. No earnings. Maybe a news item might help, but even good news won't boost it much nor for long, and there's no way to forecast that. So considering that the profit potential is negligible, it's probably not worth the risk. Moving further in time, September probably won't be too good, either, since, historically, September is the worst month for stocks. There's always a steep decline in October, and while November and December are usually good, I don't think it will happen this year because of the Y2K fear.

To: jmac who wrote (138252)	8/3/1999 7:25:00 AM
From: Bald Eagle	Read Replies (1) \| Respond to of 176387

<<). Then, can someone tell me what DELL August 40 calls are at 2 3/8. You can play the upside on DELL for 2 3/8! >> Well, if you like them at 2 3/8, you should love them at 1 15/16 :-) I sold some ( covered ) for 2 5/8, but I'm not ready to buy back yet. I think DELL will drop a little more before heading back up again.

To: jmac who wrote (138252)	8/3/1999 8:01:00 AM
From: GVTucker	Read Replies (1) \| Respond to of 176387

jmac, RE: Then, can someone tell me what DELL August 40 calls are at 2 3/8. You can play the upside on DELL for 2 3/8! That's insane unless someone knows that DELL just isn't going to go up. I don't get it. Does anyone? Actually, that isn't so cheap. If you measure what the implied volatility for DELL would be using that call price, the implied volatility would be in the 50's. Next, I looked at the actual volatility of DELL over the past couple of months, which is about 46. In other words, theoretically speaking, the call option was actually overpriced. This is rather logical, though, when you realize that earnings will be reported before expiration, which would tend to make the stock more volatile.