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

To: Matthew L. Jones who wrote (104507)	2/24/1999 12:11:00 PM
From: PAL	Respond to of 176387

If you are contemplating on selling puts, the stock selection is very important. Your example of wanting to own XYZ stock (I know you use DELL, but I am illustrating using a generic stock symbol) at $ 85 so you sell put Mar85 at 4 1/2. You get the shares if XYZ is below the strike price. If XYZ is a mediocre company, or trending down, it means that you are buying a stock that everybody else is selling. It could go down even further. Look at Dell,it is a dynamic company. The recent downturn is temporary. Even Dan Niles admits that it is the best company in direct sales. Even if you are assigned, it will bounce back. Another strategy is rolling the put further down the year (probably Apr or May etc).

To: Matthew L. Jones who wrote (104507)	2/24/1999 12:14:00 PM
From: edamo	Respond to of 176387

matthew...dell dlqmar85p... the other strategy is if you want to own, and not sure of entry point, back into it by having it put to you at a cost lower than today...less risk than buying today if you feel short term unclear.... many strategies, methods, etc...as are pointed out..as long as you achieve your goal...which is NOT TO LOSE MONEY....then do what your risk tolerance allows...too many think the purpose of investing is to make money...if you follow the rule of never to lose...than the objective to gain is always obtainable...