Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 176.31

+1.9%

3:59 PM EST

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To: RocketMan who wrote (55103)	12/20/1999 9:38:00 AM
From: Eric Daniels	of 152472

"Once Q gets to $570 you are even on the leap, and are now playing with 140 shares, worth $67800 after subtracting the cost of the leap." You actually have only 40 shares unless you bring to the table an extra $45,000. The leap contract gives you the right to purchase 100 share of Q 1 year from now at 450/sh. Recalculating your Jan O1 Results if Q 570: Buying 1 leap & selling 100sh QCOM: Total equity $22,800 (Appreciation of 40 shares bought back at 350 & held to 570) Holding 100 shares: Total equity $57,000. The difference in strategies you suggest is NOT 10,800 in favor of buying the leap but $34,200 in favor of just holding firm. (This does not consider taxes or possible profits accruing from more than one successful trade on the cash freed up from the initial sale.)

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