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

To: JBird77777 who wrote (91597)	1/27/1999 1:24:00 AM
From: BGR	Read Replies (1) \| Respond to of 176387

JBird777, Are you sure about the leverage? If DELL goes to 200 by expiration, the LEAPS appreciate by a factor of 100/27 i.e. approx. 4 whereas the stock appreciates by a factor of 200/88.5 i.e. approx 2 which gives about the same leverage as the 50% equity margined position. If DELL > 200 at expiration, the LEAPS position fares better. This requires a 40%+ appreciation/annum which is less than DELL's projected earnings growth rate. -Apratim.