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


To: stubba who wrote (165561)5/24/2001 3:47:33 PM
From: Sig  Read Replies (1) | Respond to of 176387
 
Stubba:
Dell does three things with options that I read about. They sell calls, sell puts, and buy calls.
Buying calls when price is low permits them to obtain shares for dispersing to employees
Selling calls as they did ( at strikes up to $65) is pure income , but not earnings. Dell not likely to hit 65.
Selling puts used to be more profitable in the past, so lets get this pig above $40 or somebody in Dell will get put-to unless they have covered -.and I suspect that the situation has been corrected
The puts can only be exercised on the specific expiry date, so the drop to $17 did not hurt. And I dont know the expiration dates
You probably know this , so just adding my 2 cents.
.Sig