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

To: Richard Tsang who wrote (44743)	5/25/1998 11:26:00 PM
From: Geoff Nunn	Read Replies (1) \| Respond to of 176387

Richard, most recent investors in Dell have seen their profits soar, and many undoubtedly are nervous about their positions. I suspect a great many of them want to unload some shares, but are unwilling to do so because of short term cap gains taxes. The smart thing may be for them to hold on to their shares for 18 months, and purchase put options as a hedge. Something like this could easily explain the transaction you referred to. While it's true that puts that far out of the money don't provide great protection, they have the decided advantage of being inexpensive. My guess is that the buyer just wanted some cheap insurance.