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


To: jbn3 who wrote (66129)9/18/1998 2:18:00 PM
From: Kayaker  Read Replies (2) | Respond to of 176387
 
I'd be interested to hear opinions from folks as to why you would buy Dell stock instead of in-the-money 2001 LEAPS, e.g. Jan 2001 55s for 25.25.

With the LEAPS, you get more than 2x the bang for your buck and the time decay is minimal because of the time until expiration. Hang on to them for a year or so, then trade up to the 2002s.

I wouldn't do this with every stock, but given the outlook for the stock over the next year or so, in-the-money 2001 LEAPS seem to me to be a much better investment. Dell would have to stay at or below the current price for more than a year before I'd start to sweat.

Comments?