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

To: yard_man who wrote (111887)	3/24/1999 7:26:00 PM
From: edamo	Read Replies (1) \| Respond to of 176387

tippet..re:dell sell puts/ go long...you didn't keep an open mind.. it's obvious you don't understand... risk can never be any more than the strike price...regardless of underlying movement...cash/capacity collateralizes same roll the proceeds covers the purchase of the long, no added cash needed. amount of long that you purchase is the ratio of premium to underlying price selling deep gives you a whole lot of premium... let us assume the above statements are true...unless you can show me the error of my ways...and if you do, i promise i will give up a very lucrative income that the strategy has afforded me for many years...i'm not a new investor..been around since the seventies real life...2/17, bad dell news it sells off, common at 82.5..max volatilty for the momos are running for the exits.. i sell 40xdell 01120...at 52 premium (zdemd) split gives me 80xdell 0160(zdeml) today bid/ask on zdeml 25/26...interesting...stock down 10% premium par with a month ago...why volatility subsided...even as stock further declined.. so now i got 208k...fully collateralized...not bad for a day's work.. i slowly buy 5000 shares of dell, starting at 42.5 and down to 38 today...average at 40...200k out...8k reserve... no margin 5000 shares fully paid for, still have my capacity.. so today i'm down on my long 1.5 points=negative 7500...still got 8k reserve... no offense, but only a fool would think that dell will never go beyond where it closed today...the call comes with experience and not driven by an ego which must prove all others wrong regardless of self loss... so lets travel to jan 01...say dell @ 45...my 5000 worth 225000...my put costs 480000...i accept for simplicity(don't want to get into rolling)...so now i own 13000 dell with an average cost of 36.3(480000-8000=472000/13000)...a bit lower than today...but with less exposure...earning on the 480k...instead of paying margin interest.. of course i'm not satisfied with such a meager return...to invest you must have courage and a belief in the company that you own...22 months from now dell will be above 60...if i didn't believe it i would not have set the position... so i've told you most..when does my scheme fall apart...or does it grow like topsy... NO SUCH THING AS A BEAR MARKET....ONLY BULL MARKET CORRECTIONS how can anyone with a modicom of intellect look at a 75 year chart of the dow...and show where it went down and stayed down????? if you are bearish...then you have no faith in the country that you live in...success cannot be born from negativism...take it to the bank my friend...learn from those who have achieved...don't kick a man when you think he is down...for he may be bending over to pick up a shiny penny which he will invest, while you expend energy kicking...perhaps miss your mark as he stands up.... good luck my friend...two sides to every trade...ed a.