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

To: Key West who wrote (46327)	6/4/1998 9:21:00 PM
From: Sig	Respond to of 176387

Gene: Re Dell options >>>> Another possibility is that these were written against core positions as a defensive stance again leading up to the announcement.>> IMO thats the major factor in the many options. Dell was moving real strong and consistent right up the ladder to above $90. Over 100 % return in less than 6 months, reaching all time highs, other techs looking rather sick and earning coming up. Anyone rather new to Dell would be looking for protecting the gain. Broker very very happy to oblige them, sell the calls, buy the puts, good fees. Sell the calls at 90 to 105, buy the (very cheap then) puts at 10 to 20 under the stock price.( 70 to 85) Creates a big spread. So they were somewhat right, the Dow and Nas did seem to peak, some crummy techs did tank, but Dell obstinately refuses to head for the (predicted) cellar and is fighting back.(Hehehhehe0 Add 5 points to Dell next week for $90 and money invested in the protective put insurance is going bye-bye. And sellers of the calls will have to stay sharp for next two weeks. I have no idea whether any trader has the power to keep Dell down thru options Expiration Sig .

To: Key West who wrote (46327)	6/8/1998 3:30:00 PM
From: Gabriel008	Read Replies (1) \| Respond to of 176387

Gene, just got back in from a fishing weekend & it's taken me over 2 hours to review the posts on the thread. The one I found the most interesting was the item on ASP's. In my opinion if the the ASP goes up 1% the incremental dollars go directly to the bottom line and generate an additional $43.75MM [based on 1.750 million units in Q2]profit or $0.0625 of incremental eps for Q2. There is no cost of sales associated with a marginal increase/decrease in ASP. The cost is only attributable to the units sold. You'll notice that in Q1 the ASP dropped approximately 4% with no corresponding decrease in GP or NPBT. This is due to component costs decreasing as fast as ASP's. If component costs decrease as quickly in Q2 imagine the positive impact on the bottom line with the ASP's actually increasing. Check out this post from Jim Kelley re ASP's; exchange2000.com