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

To: techtfh who wrote (161754)	10/5/2000 1:14:33 PM
From: edamo	Respond to of 176387

techtfh...."averaging down" you must decide on a belief in the direction of dell stock.... not sure of your option experience but, i would probably sell a january 60 put with a 34 or so premium, which in essence will place you in the same risk position as going long at 26 or so....the premiums have little or no time/volatility value left, so they will move par with the common in either direction.... meanwhile you are collecting money market on the premium...if you have the cash to go long at 26...add the 34 prem, and you fully covered if assigned at 60... notice it is notching down to 25 5/8...perhaps buyers drying up? good luck..ed a