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

To: D. Plen who wrote (167655)	10/27/2001 11:55:47 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

Drew - yes, I think the Dec 30s are quite safe, and as always, if the price gets close to the strike, consider rolling them out if you don't want to sell the stock. I do a fairly mechanical play which consists of covering half of my position every four weeks or so, with expiration about 8 weeks out. That way I have my whole position covered but not on a single strike and date. I sometimes mix the strikes especially if the trading is thin. That pattern was interrupted due to the sharp drop the stock took in late August followed by Sept 11. I don't like to sell calls on a dip - confidence is low which drives down premiums, and the likelihood of having to roll out is high, especially with DELL. So I let my call positions expire without selling more. Instead, I sold Nov 17.5 puts, the DLYWW. I figured that the worst that could happen would be that I effectively buy DELL at around 15, and that didn't seem like a big risk. The pattern over the last 2 weeks has been more to my liking and I have been selling Dec 27.5s, the DLQLY. I didn't close out the put position as I am confident that it will expire worthless and all it ties up is margin which I use for no other purpose. My reasoning is that I think Christmas sales will suck, and corporate buying will also be weak, which will keep the stock from moving up much from where it is at least through the end of the year. But DELL will lead the pack, which will keep it from dropping anywhere near my put range. I don't like to sell Jan calls on DELL because of the earnings call - it's just too hard to predict. So my farther out sales are Feb 30s, the DLQBF. If earnings are good in January, that may move the stock up, and at least I will have some time to react. And the DEC calls will hopefully have expired worthless. So that's my simple minded analysis. I'm really not putting in the time I used to on this stuff, so take it for what it's worth, which is probably not much...

To: D. Plen who wrote (167655)	10/28/2001 6:55:07 PM
From: kaka	Respond to of 176387

D Plen, I've been trying to sell 10 contracts at a time each time DELL has traded above 26 for the December 30's. As per Rudedog's repsonse, you can always roll them if things get too close and you don't want to lose the shares, but I like your thinking better. You can almost bet that if you get assigned you will be able to get the shares back at a discount. Even better, if assigned, wait for a dip and sell some puts. I've played in and out of DELL @ 25 many times, collecting the premium on both ends (except for the September expirations when all bets were off). cheers