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

To: Dr. Arvind who wrote (78080)	11/11/1998 12:16:00 PM
From: SecularBull	Respond to of 176387

Doctor, it is my understanding that Dell does not buy-back its shares on the open market per se. It sells puts and uses the proceeds to buy calls, and then exercises the calls at a later date. In that scenario, when they exercise the calls is not as relevant. To this point, the puts always expire worthless. The beauty of it (yes, there's more) is that it's my understanding that this transaction, when a public company is dealing with its own stock, is tax-free. Regards, LoD