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

To: Jeffry K. Smith who wrote (120803)	4/27/1999 11:23:00 AM
From: edamo	Respond to of 176388

jeff...<ot> calls and puts act in similar fashion...if you are going to buy calls, best consider deep in the money, with long expiration...you will pay a larger dollar amount to buy, but a lesser inherent volatility factor...in essence it becomes a stock replacement...you can buy today a dell 0117.5 call at 30 or an 0180 at 8..come expiration stock at 80, and you lose with the latter case, the former the option worth 62.5(80-17.5), which is a safer bet???....i apply the opposite logic on the sale of a call or put...i want to use the volatility to give max premium... you sell a farther expiration to cover a nearer expiration...and the result is always net to cash...with same strike price exposure...do it enough and you can almost zero your cost if assigned...which equates to minimum risk....