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

To: Jeffrey E. Klein who wrote (95678)	2/7/1999 7:58:00 AM
From: Sig	Read Replies (2) \| Respond to of 176387

<<<<I like low priced options. How about 125 or 130 or 135? Are these overly optimistic choices? Thanks! >>> I won't answer that because I don't enjoy being hunted down and shot when Dell hits $150. And Dell is one of those rare stocks which could do that. But overall I have had more success with medium priced options than with the cheap ones. Sig

To: Jeffrey E. Klein who wrote (95678)	2/7/1999 8:49:00 AM
From: Don Martini	Respond to of 176387

Hi, Jeff! I like those cheap calls too, bot 45 Thursday. $1.25 for Feb 120s. If stock climbs $10 this week they'll magnify beautifully. Shucks, I've allready got 1/16! I think the Mar 120s you're thinking of will pay off, but both are gambles. I hope you hit the bulls eye, Jeff! Feelin' swell cause I got my DELL! Don

To: Jeffrey E. Klein who wrote (95678)	2/7/1999 8:57:00 AM
From: Mike Haider	Respond to of 176387

Jeff, I have made a lot of money lately on options with just a little more time value than March. Have you considered using a bull spread with calls that are far IN the money for safety? You never know in this market when someone important will decide we are over bought. Mike

To: Jeffrey E. Klein who wrote (95678)	2/7/1999 10:55:00 AM
From: Jimbo	Read Replies (2) \| Respond to of 176387

My personal opinion are those DELL call options are too far out of the money - look at the Mar 110 (I own them) - there is an extraordinarily high open interest on them !

To: Jeffrey E. Klein who wrote (95678)	2/7/1999 11:16:00 AM
From: BGR	Read Replies (1) \| Respond to of 176387

Jeffrey, Note: Not meant as investment advice. Option trading is inherently risky and I have often lost more money trading options than I earn in a year.<b/> There are no such things as low priced options. Adjusted for risk/reward, all options for a particular equity and for a particular strike are valued the same way. To give a very simplistic example (I am making the numbers up): Say DELL has a 70% probability to go to 110 by Feb expiration, 20% to 115 and 10% to 120, and 110, 115 and 120 are the only 3 strikes available. You will find that the 120s cost less than 115s but adjusted for the risk that you are taking (115's are twice as likely to be in the money than 120's), the values are justified. So it all depends on your risk preference. Do you want to make a relatively safer bet with lesser return or a riskier bet with the the chance of a windfall? The actual price of the option should be a non-issue. Decide on your risk/reward preference and hence on the particular strike; buy as many contracts as your risk capital would allow. I am holding Mar 110's which I plan to sell shortly after earnings. -Apratim.