Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bretsky who wrote (120192)	4/22/1999 9:25:00 PM
From: Mike Allen	Read Replies (1) \| Respond to of 176387

To Bretsky: Options on Dell. I have played the options on Dell for a little while now and suggest buying calls on dips and basing periods such as the one we're in now. Pick a good target. For example, I have been averaging into Aug. 50 calls for several weeks. The idea is not to buy them all at once as you'll be fooled more often than not and the share price will drop a little further. If you pay $5.00 for a contract and the stock goes up it may be worth $7.00 before you know it. Then a couple of days later you look and it's back to $5.00. I resist buying more when it drops back to somewhere around my average. If it drops to $4.00 or $4.50 I'll add to the position. Sooner or later Dell stock takes off and leaves you with your final position of X amount of contracts. Make sure you buy out at least 6 months, and always buy contracts that expire in one of Dell's earnings months. Feb., May., Aug., Nov... Move out of them a week or so before earnings. This is the volatility play on Dell, but never sell your regular shares. They will be worth 10 times more in a few years. Oh yeah, buy Dell leaps anytime, but they are a really good deal in these basing periods. Good luck.

To: Bretsky who wrote (120192)	4/22/1999 9:45:00 PM
From: Ken Beal	Respond to of 176387

Hi Brett, I just bought some January 2000 60 calls (LDEAL). Got them around 4 a week ago, and they're right now 4 3/8 x 4 3/4. If you're feeling lucky, you might want to try some of the May calls -- the 42.5 DLQEV is now 3 x 3 1/8, and the stock should continue rising through earnings (May 18). The May options expire Saturday, May 22 (last day to trade them is Friday, May 21), so (as always) you'll have three days after earnings for the options to pop. I've tried this in the past and the first time was great, but the second time I got clobbered so I'm a little more cautious now. It looks like this would be a good time to place that bet. And in fact, I have a couple of those DLQEV's I had bought a while ago (I'm up a buck on them -- which works out to about 50%). My strategy now is to buy options 6 months to a year out, so the risk is more like the stock but the potential return has the leverage of the options. I'm in DELL, YHOO, EBAY, AOL, and IDTC right now. Hope this helps, KenB PS Did you hear about the web-zine that's being sold on eBay? See excite.com for the story.

To: Bretsky who wrote (120192)	4/22/1999 10:18:00 PM
From: Sig	Read Replies (1) \| Respond to of 176387

Bretsky: Re options. Am in full agreement with Mike Allens reply. I have a full stable of May and Aug options purchased over time from Oct 1998 to yesterday: DLQE f,g,h,i,z, and DLQH,h,j,u,v 's The whole bundle would be about even with cost so Dell needs a few more $ up to look good. I was fortunately very light on the March and April calls and I think Mike is right to concentrate on the earnings months. I have also taken to selling some when they up by 2x or more to lock in some profit but sacrifice some (possible) further gains. Am very happy with the Leaps, can buy them anytime. 2001's would be LT gains and the 2002's should become available about June FWIW Good luck Sig