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Re: JimLur post# 22577

Saturday, 05/03/2003 5:52:15 PM

Saturday, May 03, 2003 5:52:15 PM

Post# of 432922
Defintiely no, Jim. Selling puts was a great way for some big caps like Microsoft, Intel and Dell to collect cash premiums in a bull market, but it proved to be a great waste of free cash flow during a bear market.

For example, Dell is still retiring puts it sold at around $44 per share while its stock remains stuck in a multi-year trading range with a hard upper limit around $30. Dell has to keep on forking over the cash difference between $44 and its applicable stock price to retire those puts as they expire.


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