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

To: rudedog who wrote (143610)	10/2/1999 8:34:00 AM
From: D. Plen	Read Replies (2) \| Respond to of 176387

Rude, Your move certainly does look low risk, and you have cash in hand, almost until the puts expire. At what level would you sell covered calls? 50? Oct, Nov? I was thinking more about buying DELL calls, as a bet that the Fed will stay put, we are in the second half of the quarter leading into earnings, and that we've been through a lot of stormy weather of late, so there must be some blue skies ahead. D. Plen

To: rudedog who wrote (143610)	10/2/1999 10:50:00 AM
From: PAL	Respond to of 176387

rudedog: I think you have made the right move. The margin requirement seems low as well: 25% of 42 plus premium minus OTM times 10,000 or equal $ 125K in cash or marginable securities. I presume that you have more than enough coverage for that because margin call is nasty. You don't have to wait until expiry date, Jan 21/00 to get out of your obligation. Once you reach your profit goal, just buy back to close your position. No need to hold until the last dollar, just make use of your margin power for other shorting put option play with higher premium. The same thing when the market heads south, decide when you want to roll it, not necessarily with the same stock. Get the information (some of them is listed below), use your common sense and as edamo always says: keep it simple . Should the past be on your side, you will be doing fine. History shows that year over year Dell's year end prices have been increasing. Here some of the closing prices: Dec 31, 1998 Dell closed at 36 19/32 One year ago (October 1, 1998), Dell closed at 30 25/32 On Jan 21, 1999 that would be one year before your option expires, Dell closed at 42 3/32. The highest that Dell ever reached was an intraday on Feb 1, 1999 when it hit 55. Good Luck, and may history be with you. Paul