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

To: JBird77777 who wrote (91605)	1/27/1999 8:46:00 AM
From: BGR	Read Replies (1) \| Respond to of 176388

JBird777, Thank you very much for the post! Lot of food for thought. True, the LEAP holder loses all if DELL < 100 at expiration. I am surprised to hear that a 25% margin (i.e. 75% equity) is all that takes to beat the LEAPS performance as I felt that you will need substantially more margin than that. If that indeed is true, I would agree that the probability of an intermediate wipeout with a 70% DELL drop is no more than DELL staying below 100 at expiration. Would appreciate an example. TIA! -Apratim. PS: For example, the delta of the LEAPS is around 0.6, so for each $1 increase in DELL (about 1.2% increase from 88.5), the LEAPS go up by aroung 0.6 (i.e. 2.2% increase from 26.5). So it seems to me that you need more than 25% margin to duplicate that performance.