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

To: jbn3 who wrote (34461)	3/16/1998 1:15:00 AM
From: Sr K	Read Replies (1) \| Respond to of 176387

3, As I read it, these were not CBOE options so the information is not what you would like to get. CBOE puts and calls, including LEAPS are generally American style which means they can be exercised at any time. Dell bought and sold European style Puts and Calls which means they can only be exercised either at expiration or during a small window prior to expiration. The put positions at that time have expired and the calls were exercised. From page 34 of the 10-K for Feb 2, 1997: Each option is exercisable only at expiration, and the various expiration dates range from March 1997 to September 1997. Dell's positions far exceeded the 25,000 position limit for regular options. The CBOE does have a provision for custom options when done in large size. The term and exercise prices can be custom including odd or "high" exercise prices, and custom expiration dates. Dell could also negotiate a deal with the derivatives division of NationsBank or an investment bank, or another entity that makes these types of transactions. Dell only announced on Feb 18 that they would resume their stock buyback program, but I haven't seen any specific announcement and I wouldn't expect one until it is done. I would expect that it would also be European style so they do not have the daily "threat" of put exercises. They will likely match dollars again so they will buy calls and sell puts significantly above today's price. This could be a 95 put and a 90 call (just a guess that after seeing how the last one worked out, Dell would like to buy cheaper and sell a deeper in the money put). Expect that the maturity dates will be staggered again, with expiration months one month after earnings releases, and to be informed only in a 10-Q filing unless Dell deems it 8-K material. B