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

To: Lucky Joey who wrote (104545)	2/24/1999 3:30:00 PM
From: edamo	Read Replies (3) \| Respond to of 176387

annual return of put selling....never a dumb question.. say i sell a dell mar 75 put dlqoo, get a small premium of 1.25 (125contract)...use 7500 cash or margin capacity as collateral, do it or something similar every month...end of year providing not put to me get $1500 (12 x 125) in premiums which is a 20% return on my 7500 collateral...this is putting in a very simple fashion to better understand...stock moves up rapidly can sometimes set a few positions in a month...dell has had this ability...now there are times such as 2/17 when the downside caused an extreme volatilty, that i actually sold dell 01-120puts for a 5200/contract premium..this contract i can buy back today for 4650...a bit better than 10% movement giving me 550profit against 12000 collateral in a week...by my calculations 4.5% in a week, annualize to 234%...if i let it go to expiration and it is not put to me i keep 5200 against 12000 or about 44% for 22 months or 24% per annum, plus the appreciation of how i invest the cash received from the put sale....i stand open to correction on my math...and i'm sure i will be...bottom line it can be profitable if you understand and desire the underlying issue...verbose i am...hope it helps ed a.