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To: Judy who wrote (14830)	8/21/1998 5:22:00 PM
From: David Weis	Read Replies (1) \| Respond to of 42787

Electric, does DELL typically run up for splits, and by how much? I'll be selling Sept puts soon ... the Aug puts expired worthless. Judy --- I hope you don't mind if I jump in here. I think a run to maybe $130 might be possible, but NOT in this market environment. btw, why did you not sell your September calls into strength yesterday and reestablish the position at a lower entry point? maybe because you or I were not here to push him??? I sold my Aug 110s into the strength, yesterday. Got out, like right at the buzzer. :o)

To: Judy who wrote (14830)	8/21/1998 5:27:00 PM
From: Electric	Read Replies (1) \| Respond to of 42787

Judy, Great to hear from you... The reason I didnt sell into strength yesterday is that I wasnt around all day and the fact that I bought these at levels of about 116 or so about a month ago. I have seen that DELL options are priced about 5 points per month higher, I payed about 10 points premium, survived the downside and was ripped on the premium strip when the 115's got into the money. So now there is 5 points of premium in them, and they are 3 points in the money or so, thus I am not at break even. I feel there will be a good amount of run still, but todays action was not impressive. Also, since the split occurs on the 4th, there is a good two weeks afterwords before expiry. My goal to exit is 130, if that occurrs too quickly, I will revise that goal. The downside is limited IMO, as long as the market does not decline severely. A small decline is acceptable, since DELL will be in the front of a NAZ 100 runup.. If I were instructing you (I am not) I would purchase a leap or sell a longer put into DELL after the split. Normally the stock will settle in after a split and then run afterwords. I plan on purchasing a July 99 or somthing in that area at the post split price. I feel with their China plant opening, and their small percentage of market share that they will continue the run they have had since I have known you. Understanding business models I know how difficult it is to implement a BTO/JIT inventory model. It can and will take companies longer than a year to get it right, it isnt enough to simply copy the blueprint. HWP/CPQ and the like are going to be lucky to get their models off the ground and emulate DELL.. Just a few thoughts..