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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 171.02-1.5%Dec 31 3:59 PM EST

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To: waverider who wrote (56483)12/23/1999 4:01:00 PM
From: Uncle Frank  Read Replies (2) of 152472
 
You're doing one transaction that consists of two components being executed simultaneously. Your analogy of trading in a car is excellent. The contract is based on the difference between the cost of the new car and the trade-in value of the old car. The agreement to buy is based on the delta.

From the government's point of view, the sell side of the transaction is a taxable event.

Call your broker back and talk to a manager in the options department before you head for the beach.

uf
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