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

To: GVTucker who wrote (159767)	8/17/2000 4:58:23 AM
From: Zardoz	Read Replies (1) \| Respond to of 176387

infers that you are not capital constrained. Not capital contraint, but liquidity challenged. It's easier: 1) write the puts options for Dell and apply the 20% margin requirment to the account 2) Take the put write money and buy call options, same strike, same month Your other option is to go long at 30% on the equity, which requires more CASH for the margin. If I was too assume that I am correct and Dell moves above say $45 before expiration then the writing of the Put option becomes key to lowering the overall risk and increases the return. Beyond around $39.5 the Bull spread becomes pure profitable. Worse case the equity goes lower then $37.5 and someone gives me the stock at that price. To which I would've been long from $37.5 under your plan and would be no further off. But then I would have to liquidate other holding to match the margin requirements. {those other holdings went up 2.8% today} Effectively when the put options premium retracts it may be worth whiled to close the position by buying the write back. Then while the call is profitable, and the Put write is gone; I can safely day trade the full contracts size, with no fear of margin restrictions. Hutch PS: You short, long or out?