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

To: Jim Patterson who wrote (25744)	12/19/1997 10:59:00 AM
From: hpeace	Read Replies (2) \| Respond to of 176387

jim, i think you will discover that dell instead of just buying their stk back...played it safer by selling naked puts.. of course over the last 2 yrs. selling naked puts didn't buy much stk so the started buying calls too. all of this is very safe in a stk buy back program and they made a ton of money. may I suggest mcmilans book on options. you will see just how safe a naked put is if you were going to buy the stk anyway. dells derivitive days are gone. if you are autorized to buy say 2 billion in stk back... would you rather just buy the stk or write a april 75 put for 5 a share. this way you bot that lot of stk for 70 instead if it was down and if it went up. you keep the 5 a share. look at their 10 k . you can actuall see the liability on this and the profit in the calls they own. mcmillian talks about this in his book. He makes a pretty good case for the naked put is the safest play "assuming you have to buy stk anyway"....