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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 155.82-1.3%Jan 23 9:30 AM EST

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To: Jim Willie CB who wrote (52294)12/2/1999 10:50:00 PM
From: marginmike  Read Replies (2) of 152472
 
An option question. I was just looking at Qcom options. I noticed that the spread between calls and puts at the same strike is like 40%. Couldnt one buy the Dec 370put and sell the 370dec call against the stock and make 11,000? So you buy the stock for two weeks and you sell the calls guarenteeing an 11,000 profit. if the stock goes down you have 28 in call premium you recieved plus put protection, so also guarenteing an even biger profit. Now what am I missing? I know 11,000 on a 370,000 investement isnt great but it 3% for two weeks guarenteed. What am I missing?
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