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

To: HDC who wrote (64044)	9/8/1998 6:24:00 AM
From: Don Martini	Read Replies (1) \| Respond to of 176387

Hello, Duncan! If the stock is rising and I've sold puts which are dwindling I usually keep them and sell new ones at a higher strike, further out. I buy puts back when most of the premium has become profit. If Dell is on a rocket these decisions are easy; if the market is choppy it gets more interesting and difficult. No rule fits every situation. In general I sell near term puts and roll them out, or out and down if the underlying shares drop severely. Example: DLQVF, the Oct 125P can be rolled to LDEMR, the 2,000 90P, reducing exposure by $35 and bringing in $2. Even if the stock drops to 75 the put buyer is losing money since his parity is $72, so there's little fear of being assigned. Meantime Dell turns up and in a few months LDEMR can be bought for less than $5. Of course, Dell will be on a rampage today. Prices are from Friday's CBOE chart. These aren't recommendations, just examples. Good investing, Duncan! Don