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

To: D. Plen who wrote (143612)	10/2/1999 8:35:00 AM
From: Calvin	Read Replies (1) \| Respond to of 176387

(CNET) Component shortages could hurt Dell yahoo.cnet.com

To: D. Plen who wrote (143612)	10/2/1999 10:28:00 AM
From: rudedog	Respond to of 176387

In late August, I sold 400 contracts of Nov 55 calls (DLQKK) at 2 5/16 which produced $92,500. Those are currently at 5/16 so I could buy them back for $12,500 and keep $80,000 of the premium, or I could get greedy and assume DELL will be under 55 at expiry in November and just hold my position. I don't want to get called so I will watch that closely and if the option price or the stock price starts to run up I will buy them back and lock in some of the profit. Another choice would be to roll that position into some sort of straddle on the January position. I'm still developing my understanding of the tradeoffs in doing straddles and am not ready to do one yet. I'm not ready to buy calls on DELL yet - despite the naysayers, the sentiment based on call prices in November seems to be that DELL will be in the high 40's or 50's and the premiums on everything from Nov 40's to Nov 50's look high to me. wbm is more bullish on calls and you might want to check his opinion. Jan calls are also expensive but perhaps with more justification. Still, I would be more inclined to sell an out of the money January call, 55's or higher - but not unless the premiums run up a bit more.