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

To: Chuzzlewit who wrote (114472)	4/6/1999 12:30:00 PM
From: edamo	Read Replies (1) \| Respond to of 176387

chuzz...re dell puts... again the initial premise from the "journalistic experts" is a bit biased toward the negative....tremendous scary impact on the surface...but when thought thru as you kindly did...shows that there are two sides to every coin....cheers, ed a.

To: Chuzzlewit who wrote (114472)	4/7/1999 5:37:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

JBN3 was kind enough to bring an error I made in a previous post to my attention. I said ... if the stock were put to Dell the negative (remember, this doesn't hit the income statement) would be the striking price plus the premium received less the market price of the stock (ignoring interest earned on the premium). This was incorrect. The net cash out to Dell will be the striking price less the premium received for the put less the interest earned on the premium. The opportunity cost to Dell would be the net cash out less the market value of the stock. Here is an example. Suppose that Dell had sold $40 puts for $5, and earned $1 in interest. Suppose the stock is selling for $30 and the stock is put to Dell. The opportunity cost will be $40-$5-$1-$30=$4. TTFN, CTC I am sorry for any confusion this caused.