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

To: Dr. David Gleitman who wrote (96973)	2/10/1999 4:17:00 PM
From: freeus	Read Replies (3) \| Respond to of 176387

re during dips A "safe" strategy would be to begin buying 2001 DELL leaps during dips. I didnt do that today but will soon. Freeus

To: Dr. David Gleitman who wrote (96973)	2/10/1999 4:45:00 PM
From: Mark Peterson CPA	Respond to of 176387

Doc, for Pete's sake, hedge your bets! If you buy the May 120 calls, sell the May 130's, 135's, or 140's against them in a one to one ratio. Otherwise, you're not trading. You're standing in front of a slot machine. Any good book on options will explain this strategy to you. It's basically a bull spread, entered into by buying the lower strike price in a specific month for some debit amount and selling the higher strike price in the same month for some credit amount. There will be a net debit cost in this transaction. Some threaders will tell you you are giving up a large portion of your up-side potential. Don't think that's the case, IMO. If you did the spread 50 - 100 times, that's still a substantive bet. Then look for some other trade to do in Dell. But when using options as a strategic investment, always remember to hedge your bets. JMO. Remember, pigs get fat and hogs get slaughtered. Best of luck in your investment strategies, Mark A. Peterson