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

To: Ken Beal who wrote (75160)	10/28/1998 11:40:00 AM
From: PAL	Respond to of 176387

Ken, the most important of selling puts is the underlying stock. I learned my lesson by selling puts on a "momentum" stock (Tulvio Durand should know which stock I am talking about). Hoping that I would have easy money in collecting the premium, the stock nosedived because the company walked out from an analyst conference. I was put (assigned), I had to buy the stock. The lesson here is: if you are selling puts, you might be forced to buy a stock nobody wants. Now about Dell: I have no knowledge of any institution which does not like DELL. There is a racist idiot on this thread who thinks Dell will come down to $ 3/share. Just ignore that: there is always one lunatic in a crowd. Dell will continue to climb higher. I am keeping my Dell shares long term, and generate funds to buy more Dell shares. Right now I am heavily short on Nov 55 puts (which I think will expire worthless). Once my obligation is released, I will probably sell February 1999 60 puts (expiration date is after earnings announcement). I am also short Feb 1999 65 and Jan 00 55 puts (LEAPS). So far I have never been assigned on Dell. All those premium goes to buy more Dell. Actually, we have to thank those who are bearish on Dell: they buy the puts, we collect the premium. Let them shout the loudest, but let us keep the money. (VBG) If I am not that extended with my puts, I would sell Feb 99 60 puts, currently around 7 1/2. Don't you just love to buy Dell at 52 1/2 and they advance the money now, and let you keep it if you are assigned? Good Luck to your investment. Paul