The New QUALCOMM - Coming Into Buy Range Message Board

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Technology Stocks : The New QUALCOMM - Coming Into Buy Range

QCOM 180.90

+2.1%

Oct 31 9:30 AM EDT

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To: Art Bechhoefer who wrote (7621)	6/22/2011 2:02:26 PM
From: DanD	1 Recommendation of 9129

I believe what lml and I are talking about are call spreads. A call spread is viewed as a more bullish strategy than covered calls, but less than outright call purchase. I have been doing a modified version of the bull call spread by selling the out of the money calls when the stock seems to peak, or is coming under pressure from outside events. So it is like both a covered call and a call spread. I can then repurchase those calls at a later date or let the spread run to maturity and use the cash generated in the sale to set up a new position. It lets me both hedge my position with an upward bias and take some profits from the original position without having to book the entire profit and pay short term capital gains. It has worked out well with the recent fluctuations in Q. I just recently sold (Q at 57) and rebought (Q at 54) the upper calls. So yes, I took some short term profits, but I sill get to have the profits from the bottom call in Jan 2012 if the stock runs up (I think likely) and those taxes will be long term capital gains. Dan D.

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