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

To: freeus who wrote (127161)	5/20/1999 1:54:00 AM
From: PAL	Read Replies (4) \| Respond to of 176387

Isnt this the time to sell puts...when the stock price is low? No. 1st: we are entering summer months, historically slow for pc 2nd: expiry dates for aug nov are right after dell's earnings announcement, and the past two q's dell had been pressured by analysts (niles, kumar, young). there might be a copycat for next report. 3rd: premium not that appealing, especially for strike price 40. any strike price higher than that would be too risky (unless leap). 4th: analysts keep talking about valuation of dell. if you really want to sell puts on dell, try jan00/40 at 7 1/2 or jan01/45 at 14. since they are leaps, they move slowly even if the stock heads south. you can close the puts at anytime, and don't have to hold until expiry. imo there are other stocks which are more profitable in selling put. awaiting for edamo's opinion. i still owe him a lollipop. regards paul

To: freeus who wrote (127161)	5/20/1999 9:09:00 AM
From: edamo	Read Replies (1) \| Respond to of 176387

freeus...ototot best time to sell puts is when stock price is low, as now on dell..yesterday "sell off" didn't offer any unusual increases in volatiltity that i earlier mentioned to look for...this is bullish, but affords no special premium situation. dell jan 40 ldemh look not so bad at 7.5...return you about 16% in six months....conservative, fairly low risk....you can do better by selling every month, but it requires a bit more effort and monitoring, i prefer to write large number of 01 leaps with big premiums, lock them up and as time erodes make my decisions at that point...02's coming out soon....