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

To: HDC who wrote (62211)	8/30/1998 10:07:00 PM
From: Don Martini	Respond to of 176387

BUY 10 Dell 2001 Calls, 120 strike for $46.25/share = $46,250. You make nothing til Dell is $166.25+. I SELL 10 puts @ $36.50. $36,500 into my account. Maintenance requirement is 20%/strike, $24,000 plus the premium. I get interest on both til X day. My profit starts at 120 - 36.50 = $83.50 My safety level is $83 under yours. Now Dell jumps to $166.25 and you start to profit. My maintenance requirement is 10% or so of the original strike, about $12K. Market on the puts I'm short drops to $10-12. Now I sell ten $170 contracts for $40,000 I'm ahead of the game by $76,500 and you haven't made a dime. If Dell is 170 on X day I keep $76.5K Then Dell goes to $220 I close the 120s for $1 Next sell $220 Puts for $50 grand. Gains are now $126,500 Never had my own money on the table!!!! Better than stealin', HDC! Don