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


To: Lucky Joey who wrote (91516)1/26/1999 5:42:00 PM
From: BGR  Read Replies (1) | Respond to of 176387
 
LJ,

IMO Net stocks are much better straddle candidates than DELL.

-Apratim.



To: Lucky Joey who wrote (91516)1/26/1999 11:14:00 PM
From: SecularBull  Read Replies (2) | Respond to of 176387
 
The straddle works when you expect a big move in one direction or another. I think a straddle would work best in the case of DELL if you sold the call right before earnings, and sold the put shortly thereafter.

The advantage of the bull spread is that you recoup much of your cost. Yes, you're limited on the upside, but that's the price you pay for reclaiming some of your premium by selling the higher strike call.

In terms of puts, sorry, I don't play puts. You might consider selling covered calls?

Regards,

LoD