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

To: Eric S. who wrote (19458)	10/28/1997 11:25:00 AM
From: Sig	Read Replies (3) \| Respond to of 176387

Eric: Sorry I cannot say much useful, Steve and Hank seem experienced in that field, perhaps will answer your question. After three recent trashings of the Dow, I decided to invest a portion of Dell profits( perhaps 5%) in protective puts. The puts I bought this morning were for Nov and Feb, and the Nov. value has perhaps after only one hour vanished That is, on 1000 shares the cost would be 10 puts at 1/2 for Nov - @ $600 . But the stock is now up $8, or $8000 So the insurance would have come into play at around $70 if the stock had gone that low. And of course, it is only good until November 22 What I do not know is how to use puts to provide continous protection, that is, as to whether one shuld buy the longer term ones, which happen to get very expensive. Sig