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

To: Kayaker who wrote (128671)	5/25/1999 10:00:00 PM
From: Don Martini	Read Replies (2) \| Respond to of 176387

You hit the bulls eye, Bob Craig! I buy the stock, then sell both the put and call. I've learned not to go naked on calls, if you have to chase them its murder. Lets look at your situation with ATHM which is now $113, Tiy are short the 6/130 puts which are 22, but you probably got less for them. If it looks like you are losing near expiry consider this strategy. Accept the stock at 130 less the premium you received, which I'll guess was about $15, so your cost is $115. Probably the stock will be up by June expiry so that's not a bad price. Now sell the 2001 130/straddle, collect 98. Net cost is 17. in 19 months you'll probably lose the stock, collect 130.00. That's 113 profit, 667%. Of course as ATHM goes up you can sell a few conservative puts, with strikes $10-20 under the market and get your 17 back. At that point your profit is infinite .... nice word! Good hunting, Bob! Don