Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 168.06

0.0%

Dec 1 3:59 PM EST

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To: Voltaire who wrote (46752)	10/31/1999 10:22:00 PM
From: Thomas Tam	Read Replies (1) of 152472

Voltaire, have just tuned into this debate. My question is how much will the cost of using margin erode into the potential gains you have outlined. If you sell your stock (small amount) to cover/buy back the calls that have appreciated, then the value of your portfolio diminishes somewhat from having fewer shares at a higher price. Yes, I agree with you that the portfolio goes up because the difference between the loss of buying back calls versus the appreciation of your remaining shares favors the long common. In the end, are you making much more than the premium that you sell the calls/leaps for minus the interest costs of buying any additional shares on margin? Look forward to your reply. Later

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