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Strategies & Market Trends : Option Trades -- Ignore unavailable to you. Want to Upgrade?

To: Sheri who wrote (1481)	2/7/1999 6:05:00 AM
From: Jeffrey E. Klein	Read Replies (1) \| Respond to of 2341

Sheri, I see we were thinking alike. I think Dell's earnings come out week after this one, 2/17. Could have made money on Feb 90 call back in early January but my brokerage account was not set up. Low priced options make sense to me, otherwise why buy them. Some examples of call prices: March 135 $2, March 130 $2.75, March 125 $3.50. Also, the March 140 is $1.62. I'm going to try a posting on Dell's thread to gather opinions. --Jeff

To: Sheri who wrote (1481)	2/8/1999 1:20:00 AM
From: Art C.	Respond to of 2341

Sheri---I don't think DELL will be weak---DELL is not one of the stocks that I track religiously, but from what I know of the stock, it will probably be stonger that the other techs depending on which sector you are concerned with.(Damn--ended that sentence with a preposition--oh well!) From what I can gather there is some concern about a chip price war(INTC and AMD). That's bad for the chip makers---good for the makers of the PC's(DELL, CPQ, IBM--etc.). I've found out(though some amount of pain) that it is not good to hold options though the day of earnings announcements if you are not certain of the outcome. Usually there is a run up in price prior to the earnings announcement. The earnings can beat the street, but if the sales percentages are disappointing, or if there is some negative comments made during the earnings announcement, the stock can go south in a hurry. Look at what happened to IBM when they announced. They beat the street and dropped $14+ bucks the next day. Trade Smart Art PS---Consider also DEll's PE is around 105------http://www.tscn.com/wsc/technical.html?Timespan=130&Symbol=DELL&ind=S,204,28,13,4,0&PH=2