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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 165.03+1.0%Nov 24 3:59 PM EST

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To: Kayaker who wrote (32566)6/18/1999 6:46:00 AM
From: Morgan Drake  Read Replies (2) of 152472
 
Commissions on the exercise would be about $40-$50. If I exercise now and the stock goes to $150 over the next month, I've generated another $600,000 in margin borrowing power, which I will not have if I don't exercise (option holdings, no matter how deeply in the money, have no margin power).

If I sell the options now, I'll have a $1.16 million short term capital gain tax to pay buy July 15. If I exercise and hold the stock, I will have deferred the tax and it will eventually be converted to long term capital gain.
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