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

To: Chuzzlewit who wrote (91425)	1/26/1999 2:50:00 PM
From: Kayaker	Read Replies (2) \| Respond to of 176387

I think that buying short-term calls is gambling. While they potential payoffs are huge, the risks are even greater. I feel the risk. I just closed out of 70 contracts of Feb 80 calls. Originally bought them for $6.25 on the Jan 19th, sold for $10.25 on the 20th, bought back for $9.50 on the 21st, and sold today again for $10.00. Wheeeew. Am nervous about Compaq dragging us down, so will wait for a chance to get back in, but maybe at a lower strike.

To: Chuzzlewit who wrote (91425)	1/26/1999 3:00:00 PM
From: angel	Read Replies (1) \| Respond to of 176387

I respectfully disagree with you short term Dell option assessment. Dell has historically (at least the last 2 1/2 years I have followed it) climbed up about 30% the 6 weeks before earnings and given 1/3 to 1/2 back the 6 weeks following the report. The only exception to this is when a split is announced the day of the report earning in which case it continues its climb even further. I have bought and made very large profits on calls that expire just after the Dell earnings report. You definitively have to watch the stock movement very closely and have your stop-loss orders ready to fire on any major sign of market weakness. Buying a 95 Feb call fairly risky but does not require Dell to be at 97 3/4 by expiration. It requires Dell stock to appreciate at a faster rate than the time factor of the option. So if Dell climbs up to 94 by Friday your call will be work closer to $5 for almost a 100% ROI. At that point you have to have the common sense to sell before the MMs take your profits back. When I first learned about option trading in '97 I experimented with bull-spreads on Dell for a couple quarters. Each time my contracts got called out and I left a lot of money on the table. Now the only way I write a call is against my shares the day of the earnings report. In that case you get the extra benefit of the volatility implosion of the out-of-the money calls. 2c worth. Angel.