Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 168.48

+0.2%

2:27 PM EST

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To: Lynn who wrote (48587)	11/8/1999 11:03:00 PM
From: Jill	Read Replies (1) of 152472

OT: Lynn, I started with Harrison Roth's LEAPS. Other people recommend CBOE site (I think it stands for Chicago Board of Exchange) and they'll send you free info & CD ROM but I find it too technical and boring. Options have strike prices. Thus when someone loads up on Jan 200s they are buying January calls at the 200 strike price. They pay for the right to buy 100 shares of the stock any time before the third week in January, at the price of 200. If the stock soars, the price of the calls goes up much faster, and so they can sell the calls for a huge profit. Or they can "exercise" the calls, for each call they can buy 100 shares. Their decision to do one or the other or some of both depends partly on profit, partly on their estimation of the future of the stock, and partly on tax consequences. If someone buys calls they are bullish on the stock. There are other options trades as well. But it's best to read a book like LEAPS (and probably start by trading LEAPS as they're less volatile--they're options that are a year or two out) to get the general vocabulary and hang of it and then post questions. Jill

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