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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 159.59-3.9%Nov 20 3:59 PM EST

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To: freeus who wrote (61303)1/10/2000 5:20:00 PM
From: Jim Willie CB  Read Replies (4) of 152472
 
"its never a good idea to exercise options early"
most of time, true, but not when option premium fully decayed
if wicked deepinmoney, then early exercise does not forfeit any option premium (since there aint none left)

early conversion to shares allows for prudent hedging thereafter
it also releases massive margin buypower
kinda wish I had done some hedging this past week

but then again, one can easily hedge deepinmoney calls by simply writing calls against calls, instead of shares
just sells away rights beyond given upper price
couldve covered written calls late last week
the hedge becomes a bull spread option

just a thought
hey, nice close
we have dealt partially with nettlesome 160 level
160 now becomes as resistant as it was supportive on way down
it served reasonably well on three occasions on way down
/ Jim Willie
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