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

To: tsyl who wrote (54187)	7/26/1998 6:37:00 PM
From: jbn3	Read Replies (2) \| Respond to of 176387

DELL options Tsyl. 100 contracts of the SEP 120s @ 10?? OUCH! DELL OPTIONS 101: Wait until after earnings, and the price frequently drops a bit. That's when to buy the call options or LEAPs. I bought the AUG 95s @ 3 5/8 back in June--only wish I had 100!!! Wouldn't worry though. With earnings coming; the IDC data positive (both regarding units and market share), and a split possibility, I think you'll get your money back with interest, though you may not get a high multiple! regards, 3.

To: tsyl who wrote (54187)	7/26/1998 10:56:00 PM
From: Don Martini	Respond to of 176387

Tsyl, Try PUTs for your pain next time. I think Dr Dell will give you a terrific pain killer in 4 weeks You've put 100 Grand on the table for 100 9/120 call contracts. You only get one time at bat, no replays, no second honeymoon. And you won't be in the money till 130. If you sold puts instead: COLLECTED $100,000 for 50 contracts, when the 9/20P was $20 You'd be playing with the other guy's money You start out in-the-money If Dell closes over 100 on X day you keep all or part Then you can sell some more. If Dell is 90 on X day you close the contracts for a loss of $10 Immediately sell 'em again, say the Feb 120P for $35. Or January 2001 120P for $50+ [just 20 contracts] [I'm estimating the Put prices if Dell were 90] You're still using the other guy's money. You can do this forever! You'll always have a full dance card. It's like saying: "I'll pay you later if you pay me now for paying you later; or then I might decide to let you pay me some more to pay you still later" You're money is never on the table. Of course if Dell goes to 50 overnight you'll have some stock to buy. O by the way: It Dell takes off like a rocket you can sell more puts, all the way up. It's better than Excedrin extra strength! Don Martini