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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 169.27-4.8%Jan 12 3:59 PM EST

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To: TARADO96 who wrote (57003)12/27/1999 7:46:00 PM
From: PAL  Read Replies (2) of 152472
 
After a very brief dip COMMERCE ONE jump over 55 points after splitting 3-1 today. Any guesses if we will see comparable action for the Q either on Friday, or Monday, Jan. 3?

As a person who sell a lot of puts, I for one prefer a less volatile QCOM. While a meteoric jump might give a boost to our ego for correctly selecting a winning stock, the correction could be as severe. An orderly climb sustains the appreciation better.

Two things work against us:

a. you have to sell much higher strike price to be profitable, yet the risk is much higher on a pull back.

b. there is a higher probability that brokerage houses will remove the stock from margin. currently qcom is at 50% margin at schwab. note that cmgi has 100% margin requirement. how many of us uses qcom as collateral for the naked puts?

Paul
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