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

To: tsyl who wrote (58207)	8/14/1998 11:50:00 AM
From: William C. Spaulding	Read Replies (2) \| Respond to of 176387

Sept calls will decline in value because: (1) Dell's stock price will go down. (2) When Aug options expire, more Sept calls will be written, thereby increasing the supply. I know from experience that this often happens. You see the stock up a point or two on Monday after expiration, but your call actually decreased in value. (3) Time premium decay. (4) Earnings will be history. People won't be buying the calls hoping to make a huge profit out of a potentially good earnings report, therefore, demand declines suddenly after the report is issued, and prices drop.