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


To: Zardoz who wrote (159764)8/16/2000 1:21:18 PM
From: GVTucker  Read Replies (1) | Respond to of 176387
 
RE: Leverage

In your previous post you noted that you'd buy the stock if you had to. That infers that you are not capital constrained.

The only possible way that the numbers could work in your favor RE:long call/short put vs margin the stock is if you have a significant shortage of capital and thus couldn't buy as many shares as you'd like. In your example this was not the case.

The time value of DELL options is significantly greater than margin cost. The risk is equal. Put on top of that the much higher execution cost of options and the I can't picture a situation that would argue for the option position.