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


To: AlanH who wrote (125559)5/17/1999 4:18:00 PM
From: Lee  Read Replies (2) | Respond to of 176387
 
Hi Alan,..Re:.In the past, some fraction of DELL earnings have been attributed to shrewd options play.

This article was posted on the Idea thread this morning. But, keep in mind Dell sells puts to re-purchase shares so I don't know how much of the total earnings can be attributed to only collecting fat premiums on put options. Also, according to Judy, MSFT and INTC routinely do the same.

forbes.com

Cheers,

Lee



To: AlanH who wrote (125559)5/17/1999 4:33:00 PM
From: Chuzzlewit  Read Replies (1) | Respond to of 176387
 
Earnings are not impacted by options. Buying and selling the stock or the derivatives based on the stock are not considered income items. Therefore, any earnings attributable to derivatives are in addition to earnings. Options are not included on the P/L -- you will find the impact buried in the equity section.

TTFN,
CTC



To: AlanH who wrote (125559)5/17/1999 4:38:00 PM
From: GVTucker  Respond to of 176387
 
If there is any issue with the combination of the stock performance this past quarter and options positions, the easiest place to examine the impact would be the cash flow statement. Put options that ordinarily would have expired worthless would be exercised, and call options that ordinarily would enable the purchase of DELL stock at below market prices would expire unexercised.