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

To: BGR who wrote (117552)	4/14/1999 5:22:00 PM
From: Jill	Read Replies (1) \| Respond to of 176387

Except, as he says, he usually marries the two plays: sells puts to go long the common, thus participating in the upside, or repositioning if temporarily down...seems pretty elegant to me, if strike prices and timing are well chosen. Jill

To: BGR who wrote (117552)	4/14/1999 6:29:00 PM
From: Michael Bakunin	Read Replies (1) \| Respond to of 176387

Finally, a statement on the subject with which I agree. He is decreasing his risk compared with a long stock position, at the cost of capping his upside. However, his downside differs only and exactly by the premium he reaps, hardly risk-free income generation. -bakunin

To: BGR who wrote (117552)	4/14/1999 9:40:00 PM
From: Joe Sabatini	Read Replies (1) \| Respond to of 176387

>>His is a lower-risk-lower-reward strategy Yes, but if you can get some good-sized ups and downs on a stock (and a fair amount of lucky timing), playing the call options can be quite profitable. e.g. the Jan 2001 Dell 50 calls are going for around 10-11. Not bad. Only a few weeks ago, someone could have sold those calls for 18! You buy 'em back, wait for Dell to inevitably pop back up to 50 (probably further), and sell some more. That's my game. I need a certain comfort level, and with the covered calls, I get the best of both worlds IMO. And I only do this with the good companies, i.e. Dell, Mister-softie, etc. One more thing, I can be happy when the market is going up or going down... :) Joe Sabatini