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

To: stockman_scott who wrote (114277)	4/5/1999 1:30:00 PM
From: JH	Respond to of 176387

Sold 25 04DELLc @$6-1/2. Acquired them at $2-1/2 on Mar.22nd. Will start pyramiding shorts on the 04DELL55c when the underlying trades at $47/48 and above to establish a covered call position against my core position of common shares. I believe I can collect premiums of 1/4 or higher at those levels. I certainly wouldn't mind having my 16k shares called away at $55-1/4 + dollars for April expiration! I believe that prior to April expiration, the chances of DELL testing the gap at $47/48 (+8%) should be quite good, while the chances of DELL reaching and exceeding $55 (+25%) is quite poor. Looking at the number of open interest on the options, the Max-Pain level appears to be in a region between 42-1/2 and 45 (43-3/4?). After today (lots of LONGS with out-of-the-money calls, especially the 45 calls, ballooning), the Max-Pain should be entrenched around the 42-1/2 region. That could make it difficult for DELL to sustain and hold a move substantially above $47-1/2.