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


To: Jeffrey E. Klein who wrote (88395)1/10/1999 1:24:00 PM
From: Kayaker  Read Replies (1) | Respond to of 176388
 
Jeffrey, if you want to bet on Dell by buying Feb calls, I would definitely NOT buy the 90 call. If Dell is at or below 90 by expiration, you will lose 100% of your money. If I were buying Feb calls I would buy "in the money" calls, ie, those with a strike price of 75 or below. For example, if you bought the Feb 70 calls, you would pay $11.00 right now. Even if Dell was at 80 at expiration, you would still have $10 of your $11 investment. The Feb 90 calls might make you money, but short term, out of the money calls are very risky.

If I wanted to make a short term bet on Dell, I would be more inclined to buy the next month up (May). This gives you slower deterioration of the time value of the option, and gives you breathing room in case of an overall market drop.

Just my 2¢



To: Jeffrey E. Klein who wrote (88395)1/10/1999 3:00:00 PM
From: Jimbo  Read Replies (1) | Respond to of 176388
 
Jeffery you are optimistic aren't you - I don't know if I'd be picking the 90 !



To: Jeffrey E. Klein who wrote (88395)1/10/1999 8:31:00 PM
From: Perry Ganz  Respond to of 176388
 
Jeff,
that would be a very risky bet
Have you read this book "Options as a Strategic Investment" by McMillian
Good Luck
Perry



To: Jeffrey E. Klein who wrote (88395)1/10/1999 8:41:00 PM
From: Jerry Olson  Respond to of 176388
 
Hello Jeff

I would wait for a short selloff coming in the next 3-4 days...

then buy the Feb 80 calls for the run into earnings...a no brainer..

also you could sell a naked Mar 80 put, pick up 6-8 grand, and then buy the calls for free....:>}

HI DELLHEADS.....