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

To: William C. Spaulding who wrote (58126)	8/13/1998 6:54:00 PM
From: tsyl	Read Replies (1) \| Respond to of 176387

Mr Spaulding... Dont forget Dell's stock performance following the last split (initially during better mkt conditions). The split was announced around $113-$118. Within 2 weeks the stock traded in the vicinity of $140, before the so-called "Tech Wreck" pulled the price down considerably. To some extent I have capitulated ( popular term currently) regarding many of your posts. You do seem to have an understanding of options and their behavior. Yet Im in a conundrum over your recent advice to an options trader who posted a question regarding his Aug call position. You state that he will see significant price erosion IMMEDIATELY following the earnings announcement Aug 18th. The logic behind this opinion, if I understand you correctly, is that the "play" will be out of the Aug options given their very short time horizon hence low volume, poor volatility, etc. If this argument is correct, then outside of the predictable premium erosion of Sept options, would not the Sept's increase substantially within the same time frame due to option buyers moving out of Aug options, thus increasing Sept volume, volatility, etc. Of course, this discussion is about a pure play. Not about mkt conditions nor about what you feel may happen to Dell following earnings. Eagerly Awaiting Enlightenment

To: William C. Spaulding who wrote (58126)	8/14/1998 12:46:00 AM
From: AmericanVoter	Read Replies (2) \| Respond to of 176387

William, thanks for your reply...I have an options question for you, and everyone else for that matter...I read about a bull put spread... sell Dell November 80 put at 3.25, and buy the Dell November 55 put at 0.75. This trade will net the difference between the two prices which is 2.50. If the stock remains above 80 per share until November, both options will expire worthless. If the stock is trading below 80 when November options expire, you will have to buy the shares. And in this case, the actual cost would be $80 - $ 2.50 = $77.50 ... what do you think...? thanks to all Amein Alsuezi