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

To: Chuzzlewit who wrote (147640)	11/18/1999 11:50:00 AM
From: edamo	Respond to of 176387

chuz...dell puts if the premium will get you at a level that you are satisfied with, then go for it....no different then buying dell today at a discount and selling it at 50.....as long as you are happy with the return... in august i bought 2000 shares of cmgi at 79....sold 20 cmgi 100 calls at 12...sold 10 cmgi 100 puts at 30.25...look at the numbers(as i know you will) -158000, +24000, +30250= -103750 out of pocket gives me an adjusted cost basis of 51.875. in jan above 100, i get +200000, -103750= +96250 profit. all this to say cmgi is running, above 130...what to do, what to do...buy back my calls??? no....best to wait until jan, see where the stock is, and if at say 150, decide if i'm happy with the original position or pay 50 (100k total) to buy back? if i look at the stock as continuing forward, i would consider a longer term put sale, maybe an 02250 to give me the 100 prem to cover the call...bullish, but the same applies to a dell covered call, put sale strategy... beaten down stocks best....look at uis a bit back at 22...or athm at 35...or hwp at 73....big blue at 92.........and dell at 39.....all good fundamentals why not consider the put sale route???? your keen comments be they pro or con, always appreciated... hope things are well with your family...take care, ed a.