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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Eggolas Moria who wrote (74667)	1/27/2000 2:16:00 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

Gary, Even better, since it isn't management's money, then buying calls is a risk free way to goose the stock price. Temporarily. And Dell stockholders are way too dumb to complain about the gambling practices.

To: Eggolas Moria who wrote (74667)	1/27/2000 2:41:00 PM
From: Freedom Fighter	Respond to of 132070

Gary, I suppose I understood what they were doing without thinking it was a sound strategy. Mike clarified that for me. I occasionally sell puts on companies that I would be more than happy to buy at the strike price minus the premium I receive. I do it when I think I am getting a great deal on the put and I don't think I'm going to get that combo price on the stock. Today in fact, I sold puts on Diageo (DEO). I received 2 3/16 on the April 30s. I either bank the money or buy the stock at 27 13/16. I don't think DEO gets to 27 13/16, but even if it does I have no problem owning it at that price. I will probably be adding to the position at that point anyway. I think 2 3/16 was a great deal on that one. So I could see a Dell or someone else doing the same if they will be buying back shares anyway and the put premium seems like a great deal. The call portion of it strikes me more as gambling. If they are worried that the stock price is going to get too expensive for their stock option repurchases, all they have to do is start telling the truth and it will get much cheaper. (g) Wayne