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

To: Jean M. Gauthier who wrote (91540)	1/26/1999 8:55:00 PM
From: freeus	Read Replies (2) \| Respond to of 176387

2001 strike 100 LEAPS are wonderful!!!!! Absolutely buy and hold, it will split several times in the next year and a half. Remember though, even for a buy and hold...leaps lose much of their time value at about 9 to six months before expiration. Sell before six months before expiration (only of course pick an up time to do it). Good choice,you will be very pleased. Freeus

To: Jean M. Gauthier who wrote (91540)	1/26/1999 11:36:00 PM
From: SecularBull	Respond to of 176387

Unfortunately they probably won't get much cheaper...

To: Jean M. Gauthier who wrote (91540)	1/27/1999 12:47:00 AM
From: JBird77777	Read Replies (2) \| Respond to of 176387

RE: Dell Leaps The 2001 Dell Leaps, 100 strike price, will give you slightly more leverage than an outright purchase of Dell; by my calculations, about 1.25 to 1. Although slightly riskier, I would recommend instead the 2000 Leaps, using the 100 strike price; by my calculations, you would get about 1.84 to 1 leverage with these. By "leverage", I mean that for every 1% increase in Dell's price, these Leaps would increase about 1.25% and 1.84%, respectively. You would get even more leverage if you were instead to buy additional Dell on margin. Margin carries with it the risk of a margin call, but you can get up to 2 to 1 leverage through use of margin (assuming that your account is sufficiently diversified to satisfy your broker's requirements). Through the use of margin, you can also defer indefinitely payment of taxes on gains, simply by never selling your position. I don't recommend full use of margin unless you fully understand the risk of a margin call. However, you could safely match the leverage of the 2001 Leap by using a conservative 1.25 to 1 leverage in your margin account. These leverage ratios are the initial amounts; they vary with the passage of time and changes in Dell's price. JB

To: Jean M. Gauthier who wrote (91540)	1/27/1999 1:04:00 AM
From: Kayaker	Read Replies (2) \| Respond to of 176387

Would you recommend to a buy & holder with limited cash, to buy 2001 Strike: 100 LEAPS ? That would be OK I think, but if you are really a "buy and hold" guy, you might want to consider just buying the stock. You won't have to pay taxes until you sell. Even though LEAPS appreciate faster than the stock, they also deteriorate a little every day, and the closer you get to expiration, the quicker they decay. So, you'll probably have to consider selling them as Freeus said, long before they expire, and switching to the 2002s. But, that means you'll have to pay taxes. It's a trade-off. Below is a table showing how fast options decay. The first column is for calls with a strike price the same as the current stock price. The second column is for calls with a strike price that is 20% higher than the current stock price. So, for example, with 24 months remaining, an at-the-money call is losing .12% each day. Daily Percent Decay of Options Months At-the 20% Out-of- Remaining Money Money 24 .12 .18 18 .14 .27 12 .19 .55 9 .22 .76 6 .27 1.18 3 .60 3.57 2 .73 4.43 Source: L.G. McMillan, Options as a Strategic Investment.