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

To: Jerry Miller who wrote (91023)	1/24/1999 10:42:00 AM
From: Mark Peterson CPA	Respond to of 176387

IMO, sounds like your playing a naked call strategy. That's one way to push a pile of poker chips to the center of the table on the premise that DELL is going to punch through 97 to 100 by February expiration. If you win, you're going to be the genius of this thread and the envy of the threaders. If you lose, hey, they were only poker chips and as long as you have an investment account with available margin, you can buy some more. If you don't want to bet the farm, consider selling the Feb 100 calls on the next run-up. You get to keep the appreciation on the Feb 90 and 95 calls, the premium on the Feb 100 calls, and if you get called away, is that such a bad deal? The ROI on your investment would still be respectable (spectacular?) Kindly excuse the unsolicited remarks that are my personal opinions. However, I believe that hedging bets takes some of the risk out of the equation. Personally, I don't mind taking investment risks with options strategies, as long as there is a reasonable probability that I get paid for those risks. Sort of like the great Japanese swordsman Musashi Miamoto (killed 67 opponents in sword to sword combat) who always looked for that edge in combat. Always wanted to fight with the sun at his back. You should too. I recognize this is the Dell thread, but a comment on another stock is perhaps relevant. I know a guy who is long 750 of the WLA April 75/80/85 calls. He also has brass cajones. "Well", he says, "isn't that what we get paid for? Just have to suck it up and hope that WLA hits 85 - 90 by April expiration." His account was down $350K last week as a result of the Resulin controversy. But you know what? He's going to start selling the April 90 calls when (if) WLA starts punching through the 80's. On what premise? The one that says "pigs get fat and hogs get slaughtered." Good luck on your position and best regards to all Dell threaders. Mark