The New QUALCOMM - Coming Into Buy Range Message Board

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Technology Stocks : The New QUALCOMM - Coming Into Buy Range

QCOM 180.72

-0.1%

Nov 3 9:30 AM EST

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To: lml who wrote (7620)	6/22/2011 12:28:56 PM
From: Art Bechhoefer	Read Replies (2) of 9129

Writing out-of-the-money calls is a conservative strategy to reduce risk in a portfolio, especially if the call expiration date is at least 6 months away. that allows the writer to make money on the loss of premium as the option nears expiration. The problem with writing calls on QCOM is that one is led to believe that the undervalued current price, and seemingly the long term undervalued price works against that strategy. That is, if one could feel confident that the stock is fully valued, then it might be a good idea to sell a covered call. There are other stocks in the current market, in my view, which look more fully valued and which would be better candidates for this strategy. Art

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