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

To: AlanH who wrote (44492)	5/22/1998 5:39:00 PM
From: Meathead	Read Replies (2) \| Respond to of 176387

Here is the other side of the equation. They use the 6 million to buy 10,000 Nov 110 calls. Now they have the right to purchase 1M shares at 110 in November... a known price... virtually free insurance against a rising stock price. If the stock is trading at 130 or more(which could easily happen) the gain is now 20 Million plus. The risk reward ratio is quite favorable. MEATHEAD

To: AlanH who wrote (44492)	5/23/1998 7:20:00 PM
From: Sr K	Read Replies (1) \| Respond to of 176387

Alan, selling puts against a short position is a covered put. <<If the Puts were sold against DELL stock >> You don't sell puts against a long position. Covered calls are against a long position. My point stands. If Dell sold Nov 55's it is not confidence at the 93 level or so of when the position was put on. They would show confidence if they sold maximum time premium and bought minimum time premium. In the money options have less time premium than out of the money. Something like selling 95 or 100 or 105 puts while buying 70, 75 or 80 calls would have sent a different message.