Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 176.12

-1.8%

3:59 PM EST

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To: Valueman who wrote (54741)	12/17/1999 1:18:00 PM
From: Alan Bankman	Read Replies (2) of 152472

Buying out of the money puts is NOT a constructive sale. A constructive sale occurs only when you have substantially eliminated all risk with respect to the underlying security. The definition of "substantially eliminated" is -- alas -- a bit unclear. But it is crystal clear that out of the money puts does not put you in that position. Similarly, you can "collar" your gain by buying puts and writing covered calls without running afoul of the constructive sale rules, so long as the collar is not too tight! If there is demand, and I have time, I'll blab on more about this -- my way of returning the favor some of you have done me re: QCOM and various related stocks (VOX & VARL).

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