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

To: Dave who wrote (169534)5/6/2002 8:40:19 AM
From: Dan3  Read Replies (1) | Respond to of 176387
 
Re: assume for the sake of argument, that Dell, Inc. wrote $45 puts while Dell the stock was trading at $10.

Whatever the profits were, they showed up as earnings from investment activities during some past quarter - and were included in quarterly profits. If they were of that magnitude, then Dell's computer business hasn't been doing nearly as well as everyone thinks - they just borrowed profits from current and future quarters to pad earnings in past quarters.

And now the piper is at the door, demanding his pay....



To: Dave who wrote (169534)5/6/2002 8:55:22 AM
From: Bob Kim  Respond to of 176387
 
Of course, this analysis assumes that the premiums weren't used for "other" things.

Dave,

The puts were sold to offset the cost of calls Dell purchased.



To: Dave who wrote (169534)5/6/2002 11:07:52 AM
From: mepci  Respond to of 176387
 
The premiums on $45 puts when stock price is $50 couldn't have been more than $3.


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