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

To: Jean M. Gauthier who wrote (91733)	1/27/1999 11:03:00 AM
From: Jake0302	Read Replies (1) \| Respond to of 176387

Jean - OK, this is not the ONLY way to think about it... but consider this... For $8300 you "own" 300 shares, and your position will increase with leverage as the underlying security goes up (and fortunately, we here are all confident that it will go up) Had you bought those 300 shares, it would have cost you about $26,000. Not bad, enjoy the ride!

To: Jean M. Gauthier who wrote (91733)	1/27/1999 11:48:00 AM
From: Sig	Read Replies (2) \| Respond to of 176387

Jean: Re Dell leap IMO You can't pay too much for a Dell leap as the small amount one overpaid for it vanishes after you hold it: A couple examples: ZDEAJ Bgt 6-26-98 cost 16.56 now 50.75 (actual cost=~$33, but you now have two of them) ZDEAL bgt 9-01-98 cost 18.81 now 45.25( ditto) So does it really matter if you paid a few $ more for them??? What is the gain on leap vs buying stock? 6-26-98 Dell= 92 3/8 Today= $180 =+~95% ( It split in Sept) 9-1-98 Dell = 108 Today=180=+~66% Ditto ZDEAJ +~ 213% ZDEAL +~ 150% So the return on the leaps can provide 2 or 3 times the return on a stock investment if Dell continues on up. As others have noted, using margin on Dell stock would reduce this advantage, but margin can also be used on Leaps at some brokers. Regards Sig