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

To: arthur pritchard who wrote (116019)	4/10/1999 3:05:00 PM
From: BGR	Read Replies (2) \| Respond to of 176387

Arthur, Correct. This is what my expectation is (please don't trade ont his, though; I already lose enough money on my own trading options :-)): Monday and Tuesday, DELL falls marginally, IV shoots up, put prices shoot up. 1. INTC reports great earnings and revenues with good forward looking statements. Wednesday, DELL shoots up, IV shoots up, put prices drop as equity price shoots up. or 2. INTC report is just OK but no clouds in the horrizon. Wednesday, DELL stays down, IV drops, put prices drop as IV drops. or 3. INTC misses with bad forward looking statements. Wednesday, IV shoots up, DELL drops, put prices skyrocket. I think together the probability of 1 & 2 is more than 3, hence Monday put sellers will probably do OK. OTOH, they may get killed if 3 materialises. I do not have the stomach for 3. I can handle losing money that I had to start with, but unlimited liabilities that a naked option seller assumes is too much for me. I know, I know, as Ed says, always have the money to cover the put sell and you are OK. But I do not hold cash, I am always 100% invested. Mathematically I know that holding cash and selling a put is the same as buying a call, but this is an attitude problem on my part. <sigh> As for selling calls, I would never, ever sell a naked call on an equity like DELL. The liability is unlimited. For a put seller, at worst the equity goes to 0. For a call seller, just check out hdl's experience (who, I believe, has a really poor financial advisor who is letting him/her keep the short open across 3 splits). Covered calls are a different beast, though. They are little different than a limit sell, really. Hope this helps, if you have other questions, please let me know. -BGR.