Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 175.25

+0.6%

Dec 19 9:30 AM EST

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To: Jill who wrote (55297)	12/20/1999 10:09:00 PM
From: Farfel	Read Replies (1) of 152472

The "delta" changes on an option the "deeper in the money" you happen to be. The delta is the rate of change between the value of the option v value of the stock. I have found that with a very volatile option like Q, the delta usually "tops out" at about 80% or 80 cents on the dollar----with slower volatility an option can approach 100%, but Q seems to move to quickly to get to that point. Yet, considering that you only pay $13,000 to get to that 80% return on a stock which would cost you $46,600----that is a pretty good deal. Actually I have seen that if Q returns even 10% of what it did this year: 130% then the stock would be worth $1071 dollars by expiration next year----that would mean your Leap, purchased for $13000 would be worth $61100 upon expiration ($1071 - strike 460= 611 (times 100 shares) so your profit would be $61,100- $13000 (cost of option) or $48,100------not bad!----that's a 370% return on investment and that is if Q only does 10% of what it did this year-----can you even imagine what it would be if Q does 1/2 as well as this past year??? $3495 a share - 460 (strike price)= $303,500 minus the initial investment of $13000 = $290,500 on a $13000 investment; that's only 2,234% return on investment----but then Q couldn't possibly go up another 650% this coming year, could it??? or could it???? Farf

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