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

To: Don Martini who wrote (83495)	12/3/1998 12:15:00 PM
From: Kayaker	Read Replies (1) \| Respond to of 176387

$66 less $48 = $18 net cost of stock after premiums collected. If Dell closes at $80+ in January 2001 the profit is $62 on 18 = 344%. Don, I always appreciate your creative option strategies. I work through them and usually learn something new. On the example above though, in the calculation of the return, are you not ignoring the cash requirement for selling the put? Also, another way to look at this is you've got a covered call and you're selling a put. Since a covered call is equivalent to selling a put, wouldn't you be better to sell 2 puts instead, i.e., lower commissions, lower cash requirements, fewer complications?