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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (1037)	6/13/1998 10:20:00 PM
From: lin luo	Read Replies (2) \| Respond to of 2578

I thought they are still making money by making the boxes. At least they can lower the prices to break even if they have to. I don't know how they do for their options. What I understand is that they sell puts and buy calls from times to times. If they really know what the price will be, they can play it all the time and not losing money. It is the same thing as you play the options at market if you are absolutely sure where the market goes. I don't know if they go direct to the market or just play the underlying, or go to the swaps with Street houses. Either way they will be making money if they REALLY know what will happen. Let's say for the current market conditions, they can just sell puts if they are sure next earning is 2 cent above whatever the idiot analysts say, and also make sure the price do not go too high to let the options granted. They do need margin to play options.