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


To: Eddie Kim who wrote (72916)10/19/1998 10:55:00 AM
From: Kayaker  Read Replies (1) | Respond to of 176387
 
I could sell the DELL NOV 80 calls. Will DELL hit $80 in November..I doubt it. Easy money...the question is why would I want to sell the 80 calls.

If you consider it to be 'easy money', why don't you? Probably for the same reason that I don't. Selling Dell Nov 80s only gets you 1/4 right now. Considering commissions and the risk that Dell might make it over 80 on good earnings, I don't consider it 'easy money'.

IMO, there is no 'easy money' in options. Each choice just offers a different set of potential risks and rewards.



To: Eddie Kim who wrote (72916)10/19/1998 11:04:00 AM
From: TigerPaw  Respond to of 176387
 
the question is why would I want to sell the 80 calls

It does seem that if you are in a tax deferred account (or tax free) that you could buy Dell for say $58. Sell Nov60 calls for $3+ and get a 5% return per month on your investment. Just be prepared to replace the shares every month.

TP