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To: Boplicity who wrote (105763)2/28/1999 5:11:00 PM
From: Uncle Frank  Read Replies (1) | Respond to of 176387
 
To all hedge artists: I have great respect for your art,
and am trying to understand your techniques. I pulled
the following quotes for dell calls, based on Friday's
close of 80 1/8:

Expiry Strike 80 Strike 90
March 5 1 11/16
April 7 3/4 4
May 11 1/2 7 1/8
August 15 1/4 11 1/2
Jan '00 21 17 3/8
Jan '01 30 7/8 26 1/2

Since the 80 strikes are in the money, I would assume
the premium is based on time and volatility issues
only. The 90's indicate that the longer the time
period, the less coupled the pricing becomes.

Given that, wouldn't it be a better play to hedge
by selling a series of short term covered calls as
opposed to leaps?

tia,
Frank