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


To: edamo who wrote (120784)4/27/1999 10:04:00 AM
From: Ian@SI  Read Replies (2) | Respond to of 176388
 
Some interesting option volume comments...

...
Mr. Semeraro said traders were particularly interested in call options that are easily bought and sold. "Money is going where the liquidity is," he said. This lifted call options on Dell Computer, Intel and Microsoft.

Traders were encouraged by an International Data Corp. report that showed U.S. computer shipments increased 19% in the first quarter from a year earlier.

Dell was particularly active as traders bought call options in anticipation of the stock trading above 45 and 50 a share.

...



To: edamo who wrote (120784)4/27/1999 10:37:00 AM
From: Jeffry K. Smith  Read Replies (1) | Respond to of 176388
 
Edamo - you said "you only roll forward if the premium has eroded to a low point or if it goes against you..which gives more cash in to increase your capacity and maintain balance".

I understand the part about the premium eroding to a low point (the stock has moved much higher and the put option is now worth much less than you sold it for). I don't understand the '"going against you' part - I read that to mean the stock has dropped/or you get assigned...? How and what is 'going against you' and how does that create more cash?

Thanks very much,
Jeff Smith



To: edamo who wrote (120784)4/27/1999 10:28:00 PM
From: Tom K.  Read Replies (1) | Respond to of 176388
 
i ask you to play devil's advocate, introduce to me the doomsday scenario.

Ed... I've worked this in my model repeatedly and it looks fine. I've been doing just the PUTs and have been quite pleased, however using the LEAPs with long stock and covered calls really appears slick. If a flaw does show up, let us know and I'll do the same.

Thanks much for all the details again.

Tom