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

To: Sig who wrote (141829)	9/10/1999 7:28:00 AM
From: Patrick E.McDaniel	Read Replies (1) \| Respond to of 176387

Sig, buying options are like buying stock but only with more risk and more reward. Comparing the options of 2 different companies is like comparing Dell and Compaq stock. One may be more expensive but more up faster while the other is cheap and stranded like a beached whale. Buying a high priced option can also expose you to more risk if the option doesn't more up. The OTHER thing that matters on each option is what the option will be priced at a specific time down the line. Then, based on future pricing, you look back to each purchase and decide which option will yield the greater gain while exposing you to acceptable risk. You MUST look at the conditions leading to the selling of the options as well as the purchase conditions. Of course, stocks are less likely than options to end up worthless. (Unless you own Compaq). :o)

To: Sig who wrote (141829)	9/10/1999 7:49:00 AM
From: GVTucker	Respond to of 176387

OTOT RE: Options Sig, these options are not comparable, even if you discount that they concern two different equities. Note that the INQIP is approximately 10% in the money. To look at a comparable QCOM option, you would have to go 10% i the money there also to get an option with a similar hedge ratio. This would be about 17 points in the money, which would lead you to the AAWAJ, which closed at 34 offered. With those two options, you could invest a similar $ amount. You wouldn't buy the same # of contracts, because then you'd be overweighted in QCOM, which doesn't appear to be your desire. One final thing, you should also note that the volatility for QCOM is much higher than the volatility for INTC. This means that you've got to pay up for a comparable QCOM call, which will cut back on your profits there.

To: Sig who wrote (141829)	9/10/1999 8:08:00 AM
From: jmac	Respond to of 176387

Yes, that's tru for Sept. But, had you done this three or four months ago, before INTC's meteoric rise, you would have caught Qualcomm's meteoric rise and made more with the more expensive option.

To: Sig who wrote (141829)	9/10/1999 8:18:00 AM
From: TRCM	Read Replies (2) \| Respond to of 176387

Sig - Re <<<invest about the same amount in each>>> If you are buying out of the money options on two companies with the same expiration date, and one is considerably more expensive than the other, you are paying for volatility...It really depends upon your investment objectives on how you should approach such a trade...just because one option is much more expensive, doesn't mean it should be viewed as a less attractive purchase...The are many variables to consider in such a trade, and at these two options seem relatively hard to compare...Many option players prefer to play only in the money options were your delta is much closer to one, meaning that the option is moving in value almost penny for penny with the stock price...If you are equally bullish on two companies, then diversification can be beneficial, but by no means is it a hedged bet...both stocks can be beaten up on the same day.

To: Sig who wrote (141829)	9/10/1999 9:43:00 PM
From: kemble s. matter	Read Replies (1) \| Respond to of 176387

Sig, Hi!!! RE: Sig( who will buy almost any Dell option at almost any price) Hey my friend...I'm not smart enough to add and subtract all that options stuff... :o)..Drew has beaten me up for the last three years concerning these...Patrick has attempted to explain leaps...Sure, I believe in the leaps...but, just as you have often said "why would anyone sell DELL?"...I know if I accumulate and hold I'm gonna make a ton...I probably could have made more with those leaps Sig...especially if I'd have listened to Patrick in early 97...Probably should have a bunch of them now...I just know what I've been successful with...Know where this company is going...so I probably won't change when my accumulation and hold has rewarded me so handsomely...Now, if Patrick would loan me some money.. :o) Best, Kemble