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

To: Sig who wrote (102897)	2/19/1999 10:17:00 AM
From: PAL	Read Replies (1) \| Respond to of 176387

Sig, Why would not your broker let you sell naked puts? is your account a sheltered account? Now are you bullish or bearish on Dell the next 4 weeks? If you are bullish and think that Dell will go above 90, then you can do a bull spread: Buy Calls Mar80 at 7 1/2 and sell March90 at 3 1/4, cost 4 1/4. If Dell goes 90 or above, you will have 10 on investment of 4 1/4 or 117% ROI in 4 weeks. Breakeven point: Dell at 84 1/4 on March 19. Dell goes down less than 80, you lose all your 4 1/4. If you are bearish you can do a bear spread: Buy Puts Mar90 at 10 and sell Mar80 at 4 1/8, cost 5 7/8. Dell goes down below 80, collect 10 and have ROI 70%. Breakeven Dell at 84 1/8. Dell at 90+ you lose them all. Or you can do the other way around: Sell Mar90 puts and buy Mar80 and collect the premium 5 7/8, and hope that Dell goes 90+ and keep the premium. Paul