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

To: BGR who wrote (96409)	2/9/1999 2:58:00 PM
From: edamo	Read Replies (3) \| Respond to of 176387

....depends on what side of the trade you are on...... the wasting value of an option makes writing same extremely lucrative, the trader looking for high leverage and quick returns pays a high premium to trade an option like dell....buy and hold the underlying, write deep out of the money calls, and sell puts against cash...it is a bit of a sucker bet...you can make money buying options but the odds are against you on the third saturday of the month ...take a look at the premium you can get by selling a dell may 75 put (dlqqo) about $5.50....no need to consult black-scholes, just a common sense decision made that dell will not lose 30% in value by may, and if it does, worst case roll forward to a jan75 01 put and get $18 or much,much more if dell has tanked....tough to lose in a market that has an upward bias with a stock that is maintaining growth....the writer is the winner in most transactions

To: BGR who wrote (96409)	2/9/1999 3:48:00 PM
From: MaryinRed	Read Replies (2) \| Respond to of 176387

OT:..no need to apologize.....I understand an itsy bitsy bit about options...and I am beginning to study them as I have time....mainly so I can hedge positions... but for now...I have my hands full... In fact, in early January, I simplified my portfolio down to 15 stocks...because...when I had a lot more..I was wasting my time...trying to "follow" them... (I cashed out on my AMZN/YHOO/MSPG/CKFR etc) once I managed to get the portfolio $$ to "critical mass"...I pared the number of issues down to just a few fantastic stocks (such as DELL).....then some other "giants" in their respective fields... Now...watching them...is more of a pleasure...than a time waster....except for days like today...where I wish I had more cash squirrelled away...laugh... so I could buy more. I am not concerned....not retiring tomorrow....so I can wait this "correction" out... smile...mary