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

To: freeus who wrote (97019)	2/10/1999 6:03:00 PM
From: JBird77777	Respond to of 176387

Re: Leverage through use of out-of-the-money leaps Lynn, Near term, the upward movement is better for the stock than for long-term out-of-the-money call options. For this reason, I choose to sell these out-of-the-money leaps and reinvest the cash proceeds in more dell stock (fully margined). This is a peculiarity of these long-term out-of-the-money leaps. Options that are nearer term to expiration or in-the-money or both move more (percentage-wise) than the stock, in the near term, as well as in the long term. As I said in my earlier post, if an investor wants to buy and hold and not use margin, then buying and holding these leaps until Jan 2001 will produce greater returns than buying and holding Dell (assuming continued strong appreciation of Dell). JB

To: freeus who wrote (97019)	2/10/1999 6:25:00 PM
From: Voltaire	Read Replies (3) \| Respond to of 176387

Freeus, I hate to get into calls too much because there are better experts on the thread but I have found that unless a stock is really hot, the Out Of Money Calls will have the stock out pace the option almost always. Voltaire