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

To: William C. Spaulding who wrote (55831)	8/3/1998 4:00:00 PM
From: Lee	Respond to of 176387

Hi William,..Re:<<Even though Dell is only about a dollar higher than Microsoft, its Aug 120 call is 2 1/2 times higher than Microsoft's Aug 115 call.>> Do you think that this discrepancy in price has something to do with the beta for each stock, Dell being 2.2 (36 months) and MSFt being 1.39? stocksheet.com 207.226.179.207 I have also noticed that you are correct on the demand scenario. Even when very near in the money or in the money options are priced, if demand isn't there, then the actual price also declines. So, in order to trade options, it is not only necessary to be in the right direction in the right time frame, but also necessary for volatility to be high to get the best returns. Regards, Lee

To: William C. Spaulding who wrote (55831)	8/3/1998 4:29:00 PM
From: SecularBull	Respond to of 176387

It's because the probability of DELL being above 120 is higher than it is for MSFT, in the given timeframe. LoD

To: William C. Spaulding who wrote (55831)	8/3/1998 4:34:00 PM
From: Bandit19	Read Replies (3) \| Respond to of 176387

William, Right on!! Option premiums are determined by three factors: 1. underlying asset price 2. time remaining till expiration 3. volatility of underlying asset Good trading!! Steve

To: William C. Spaulding who wrote (55831)	8/3/1998 8:20:00 PM
From: Sig	Read Replies (2) \| Respond to of 176387

William: Since you have been open and generous enough to share your considerable options experience with us, I would like to return the favor and share some advantages of staying long term in Dell From your post 11987 of Aug 8 1997 to JBN, you made 20k in one week on an options play, but were somewhat negative on LT Dell.. Assume you used ONLY the $20k and bought 250 shares of Dell at $80 share. Today that is 500 shares at $108 , soon to be 1000 shares Cost $20,000 Value $54,000 (Note)Estimated monthly apprec. $5000, yearly profit of $60000 and providing a solid base to make venturesome options plays In my case, IF I had managed to keep all the 550 shs I owned in 1996, it would be 4400 shares worth $482,000 with an estimated monthly appreciation of $44,000 and yearly apprec. of $628,000 And no tax to pay until some is sold.... NOTE Dell stock rises rather consistently over the years at a rate of about $10/mon, 100 pts in 1997 even with a flat 2nd half, 66 points this year to date.Can be checked using historical(pre-split prices) I did read your options posts last year and found some very useful ideas.Thanks and Good luck Sig