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

To: Yamakita who wrote (91013)	1/24/1999 10:13:00 AM
From: Jerry Miller	Read Replies (1) \| Respond to of 176387

"Does anyone have any feeling on the Feb calls? Is it a prudent speculation to buy the 95s? Premium is currently 1.562." how "prudent" the move might be, is certainly an open question, since time erosion will become more and more a factor as you approach expiration. but here is something to consider: if you buy the 95s in quantity, a decent profit can be had. for example... let's say you purchase 50 contracts of the Dell Feb. 95s (DLQBS) at the price you mentioned, "1.562" ea. that's 50x1.562x100=$7810 invested. a one point move in the option itself is a $5000 gain. 50x2.562x100=$12,810. or similarly, a 1/2 point gain in the option brings a $2500 profit. but any multiple of contracts would show a like return. 20 contracts, a $2000 return on a one point move. 10 contracts, a $1000 return on a one point move...etc. in this wager, whether or not Dell's stock price actually reaches 95 is not an issue. your primary concern would be the movement in the option. this approach works in both directions of course, and you could lose 5 grand very quickly if the option loses a point, and you sell. but considering the moment, and the likelihood that Dell will deliver, in some fashion, the risk here can certainly be worth the reward. i'm holding Dell Feb. 90s and 95s, and AOL 185s, under this scenario.

To: Yamakita who wrote (91013)	1/24/1999 10:58:00 AM
From: PMS Witch	Respond to of 176387

"Is it a prudent speculation to buy the 95s? ..." Dell typically rises in anticipation of earnings. After the last couple of quarters' results, Dell paused to catch its breath for a few days. Since the earnings will be announced just before February expiry, you won't lose much premium closing the day results are released. The big question is "At what price will Dell trade at just before earnings?" If $95 or above, you win! Another strategy: buy fewer in-money calls with the same money. Less premium to lose and could be sold for profit with lower stock price at expiry. If Dell only rises $3, to $86, you'll come out even. At $90, you'll be laughing. If Dell falls, you lose the same $$. Another strategy: initiate a bull spread. Buy $80 call and sell $85 call. Your outlay will be about $3, probable return $5, for a profit of $2, giving you 60% for three weeks. Hope this helps, PW. P.S. Usual disclaimer: Last time I recommended a strategy, it didn't work out. Could happen that way again.

To: Yamakita who wrote (91013)	1/24/1999 11:48:00 AM
From: arthur pritchard	Respond to of 176387

Yamakita:<excellent Dell reps> Yesterday, I spoke with an annoyed new owner, who had to wait 1/2 hour on phone, twice! Just to reach install advice. She called in first, only to be told that because she has a laptop, she has to call a special laptop number. But doing that, necessitated yet another 1/2 que on the phone. So then, when she had more questions (later in the day) she was looking for other-than-Dell numbers to call. I don't think this is OK myself.