Hi KY,
Your play is to buy the March 100 calls on QCOM? Buying OTM is riskier than DIM, particularly when a stock is in a severe downtrend. First, consider waiting on the purchase until QCOM dips below 100 (which I think it will on Monday or Tuesday), second, leg into the position a bit at a time, buying a few with each downdraft under 100. Perhaps look at the March 70's or 80's, whose premiums have also diminished, to capture a higher delta for a rebound.
At this point, QCOM doesn't look to be basing, IMO, so I'd be very careful establishing a long positions.
Have I scared you out of it yet? <gg> Sorry for my bearishness.
Any other opinions? |
