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

To: Geoff Nunn who wrote (152762)	1/31/2000 4:31:00 PM
From: Chuzzlewit	Respond to of 176387

Geoff, Another point that many people fail to understand is that selling a naked put is functionally equivalent to establishing a covered call. Down-side is limited by the time-value of the option, and up-side is limited by the striking price. For those unfamiliar with this strategy: in the case of LGTO I established a price at which I was interested in buying the stock ($24). With the stock trading at around $24 3/4 and the price of the March 30 puts @ $7, that provides me with an effective price of $23 (which is therefore the maximum loss I can suffer in this position), and a maximum gain of $7 should the stock be put to me. My strategy is not predicated on the price rising above the striking price. I simply use it as a way to buy stocks at a price with which I feel comfortable. TTFN, CTC

To: Geoff Nunn who wrote (152762)	1/31/2000 7:09:00 PM
From: edamo	Read Replies (2) \| Respond to of 176387

geoff...churlish, not me.....let me open your eyes to the light! got to educate you guys... i sold jan01 60's on 2/17/99 when the implied volatile on dell soared, based on earnings concern. the premium with the stock at 41.5 was 26....at the current moment with the stock at 38 or so the premium is at 22....i've made $4 to date with the normalization of implied volatility and erosion of time value. my cost if put is $34........a price that i feel is not a bad entry point for dell between now and jan 01... not churlish at all, very astute in put selling, been doing it for years....don't just read about something, try it...you may like it....learn before you speak by the way, my gain is any point above 34....the higher the better...if i would have gone long at 41.5 on 2/17, i'm at a net 3.5 loss...right now i'm in a net 4 gain....... in addition i took in 208k in premiums that has been reinvested.......churlish no.....chortling yes! WHICH SITUATION DO YOU PREFER?