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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 172.98+1.1%3:58 PM EST

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To: edamo who wrote (56537)12/23/1999 8:28:00 PM
From: RoseCampion  Read Replies (1) of 152472
 
trading in an old car on new...[...]immediate depreciation when you take the new car off the lot...swapping a lesser depreciating asset for a higher depreciating asset, and paying to do so is not prudent. brokers and traders, as do car salesmen love it!

A more succinct (or immediately understandable) analogy I can't imagine. I will use this one in the future myself!

the sell side is the only position where rolling is advantageous.....sold some cmgi jan100 calls....stock rockets, i can give it up in jan with a 100% profit...

Umm, I presume these are covered calls, where you own the common as well? Otherwise it's hard to imagine a profit on short 100s with CMGI in the high 270s right now...<g>.

-Rose-
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