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

To: Mark Catalano who wrote (31916)	3/3/1998 8:01:00 PM
From: AlanH	Respond to of 176387

The trouble with Mar 140C is that time decay (Theta) is rapidly working against it. An intraday high above 140 would have less impact on 3/6 (or, 3/9) than on 3/2 -- assuming volatility doesn't increase dramatically. And, if volatility decreases, watch out! Finally, as [or, if] DLQCH goes further in-the-money, it will move more directly with DELL. Sadly, a new high of 144 on 3/9 would likely result in a $7 DLQCH -- significantly below yesterday's $10. BTW, I agree with you on market timing. Wouldn't it sting to be correct about DELL's trend, but be off by a few days? Good luck.

To: Mark Catalano who wrote (31916)	3/3/1998 8:59:00 PM
From: CookiePuss	Respond to of 176387

>>>> SO, you think that even if DELL re-tests 140 by Friday, the March 140 calls will not be worth as much? Do you think the March 140 calls could climb to over $6 at the bid by early next week. Or would this take something short of a miracle? Yes, you were right, puts would have been nice to offset this market volatility. However, I don't have a crystal ball and I am not good at market timing. It is hard to believe the March 140 actually hit around $10 at the bid yesterday before tanking down to today's bid of $3.875. Pretty ugly!!!<<<< From my options trading experience you don't start losing real value until around 2 weeks before options are set to expire. I think the March calls will still do well through next week as long as we see substantial upward movement from here (ie back to 140+ over next few sessions).