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

To: arthur pritchard who wrote (109908)	3/17/1999 6:04:00 PM
From: edamo	Read Replies (1) \| Respond to of 176387

arthur...re:"rolling bad options positions"... welcome back.... rolling a "bad options" position usually only applies to the risk in short term put selling...you do have to take a paper loss, but in no way to you incur a real dollar loss...it's not like deferring the inevitable for time is on the side of the put seller...the leaps product gives a time frame far beyond the longest historical bear market..as we have discussed before...you only set positions in that which you want to, and have the capacity to own... real trading profits...(dell adjusted for splits)...positions closed by me today... 10/21/97 sell 10 sunw 0055(lsumk) @17.5 net 17492.41 3/17/99 close position @ 1.875 -1888.00 5/15/98 sell 32 dell 0021.25(ldemt) @ 4 net 12800.00 3/17/99 close position @ 1 -3012.00 use no new cash to cover sell 25 x dell may 50 @ 8.5 net 21247.00 work the numbers...increased cash flow with same exposure against cash or capacity...no sense holding a premium under $2 for 10 months...release capacity and hopefully close in may via worthless expiration...if not see what is available to roll forward... arthur...in the past years, i've only had a couple of positions go against me...rolled at a time to offset short term cap gains..positions ultimately would have won... the main factor to assure success is to set the position at the correct time...and there is a great deal of latitude...remember when you roll your nearer expiration has less volatility than a farther out expiration...optimum time to roll out is on a day of volatilty...same applies to initial position...real life example #2...2/17 sold 40xdell0120 @ 52 premium...dell common selling off, but the option premium exploded $8 from previous day...even with dell going lower at times since then, the premium never again reached 52...actually settled at 48 next day with dell common lower...caught the volatility burst... arthur, pm me if you care...good luck, ed a.

To: arthur pritchard who wrote (109908)	3/18/1999 1:59:00 AM
From: PAL	Read Replies (1) \| Respond to of 176387

Arthur: edamo never uses capital letter in his post. he is a generous person who is willing to share his experience in making money. all of us benefit from his presence on this thread. You are quite right: rolling takes care of short term cash floe problem. Any losses are real and are deductable on schedule D. You can roll it as many times as you wish. Rolling is not necessarily based upon the option is in the money such that it would be exercised, but also because it is so far out of the money such that the premium is so small making it more profitable to close the position and frees up the margin in order to sell puts at higher strike price and hence bigger premium. Paul