Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 163.32

+2.3%

Nov 21 9:30 AM EST

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To: RoseCampion who wrote (41777)	9/18/1999 10:42:00 PM
From: PAL	Read Replies (3) of 152472

Rose: Here are some interesting plays on QCOM options: 1. Jan00 expiration: If you are bullish and expect than QCOM is > 192, then buy AAOAT Jan00/200 call at 22 1/2 financed by sell AAOMS Jan00/200 put at 30 1/2, net credit $ 8/share anything over $ 192 closing is profit. Risk: QCOM closes below $ 192. Events: Nov 3rd earnings report, Y2K concern, Oct phobia, January effect, money flowing back into the market after realizing that the impact of Y2K is minimal, election year. 2. 97% return in 15 months: a. buy 100 shares of QCOM at 190 (or multiple thereof) b. sell ZNOAR Jan01/190 LEAPS covered call at 53 c. sell ZNOMR Jan01/190 LEAPS naked put at 40 collect $ 93, hence your net outflow for QCOM is $ 97/share. On Jan01 expiration: If QCOM closes above 190, $ 93 profit on $ 97 investment or 96% in 15 months. If QCOM closes below 190: own 200 shares with average cost of (190+97)/2 = 143 1/2 per share. So if QCOM is higher than 143 1/2 you make money. Note: some may think that 96% return in 15 months is too low ... VBG Good Luck trading Paul

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