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

To: edamo who wrote (111910)	3/25/1999 9:56:00 AM
From: yard_man	Read Replies (2) \| Respond to of 176387

edamo No, when I spoke of premium, I meant money above the intrinsic worth of the option. Deep in the money puts have very little of that. Premie (value above intrinsic) is highest at the strike nearest the price of the underlying - You are right that if you are smart watching the vol you can make some very good money. I don't disagree with that -- only problem comes when the stock goes down and simply doesn't recover. Looking at DELL's past behavior, this seems very unlikely indeed, but it is good to have a plan B ... I'm glad that you have done well with dell. I have an open mind and I think the strategy of selling puts on a stock you love is a good one IFF the stock is very undervalued on a fundamental basis But in your post to the other fellow you suggested 2 rules. As long as you abide by those -- even if you are selling puts on an overpriced darling of the NDX 100, you will keep yourself out of major trouble. You have done the thread a service by posting such rules because I take it there are many here who think DELL is such a great stock that they will use all kinds of leverage or sell puts without the money to buy the stock when it is put to them. You are a little more savvy than the rest of the cheerleaders on this thread. I would encourage you to think a little more about long term trends in the industry and not just historical trends in the price of DELL. Good investing, Tippet