Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: hpeace who wrote (23419)	11/27/1997 11:51:00 AM
From: Meathead	Read Replies (2) \| Respond to of 176387

Yes, this is a better strategy... it's technically called a bear spread. It's infinitely more safer than just writing naked calls. Being 7000 shares short and having 80 naked calls written against Dell is pure wild ass speculation and very, very dangerous gambling. Heck, if you are bearish on Dell, you can build positions through options that are just as profitable as pure shorts and naked calls without all the downside risk. For example, protected short sales or synthetic puts come to mind. Why so risky Hank? Here's my thanksgiving gift to you Hank. Go out and buy "Options as a strategic investment" by L.G. McMillan 3d edition. It's the best investment you'll ever make for your type of trading. If you already have it, re-read it. Waiting for the family to arrive.... MEATHEAD

To: hpeace who wrote (23419)	11/27/1997 12:13:00 PM
From: McNabb Brothers	Read Replies (2) \| Respond to of 176387

steve, Thanks for the advise, but will pass on it again! I've sold many a naked option and have bought it back in a matter of hours or a few days at times! Then When I get those bounces that I like, I will sell it again! Same thing you are doing in a way, but I'm not hedging my trade! Do it like I do and you will make money too! Remember if the stock goes past my strike price I'm always willing to go short! As far as margin goes I only use about 40% of my margin in my trading accounts and leave the rest for short squeezes! Hank