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

To: PAL who wrote (110013)	3/18/1999 7:44:00 AM
From: edamo	Respond to of 176387

paul re:rolling puts...agree arthur is a real gentleman...hoping he will get back on track,,,an example of margin risk...i've posted to him further on put selling.. you realize the lack of risk, most don't as they equate it to margin with debt accruing and the underlying deteriorating, you get bit both ways.. take a put/cash sale...lets use the dell 50 strike have 50k cash, use for capacity/collateral.. sell 10 dell may 50 @ 8.5 net to cash+8500 new cash balance=58.5k if dell drops, no margin call as you have more than enough to accept @ 55... if you roll to a leap...0150 @15, cover the may net to cash +6.5 new cash balance= 65k...and if dell drops, more capacity to get the put and average down with the premiums....less risk than going long @ 50..(i use a combination sell massive premium leap puts, get 6figure net premiums and long the stock...able to build a large portfolio over time with the help of a strong market...in essence psuedo-margin) i ask those who think it doesn't work...where is the risk..sure you may miss "opportuniy"...but you have profits up or down market..cash/capacity you are king....margin and you are a subject..good luck, ed a.