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Non-Tech : The Critical Investing Workshop

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To: Voltaire who wrote (1681)1/30/2000 9:45:00 PM
From: Dr. David Gleitman  Read Replies (2) of 35685
 
Good evening Voltaire:

I look forward to hearing your recomendations, especially at this critical juncture with qcom. Over the past week I have been purchasing the leaps, mostly '02 that were in the money (160's, then 150's, then 135's then 120's...). One thing that I have noticed with this downturn in qcom is the "compression" of valuation of the leaps now that qcom is depressed. Would your recomend that I roll the Jan 02 160 leaps into a Jan 02 120, and pay the fractional difference to obtain the lower strike price now that it is depressed, or should I use my resources to buy additional calls/leaps.

My next question is that if qcom rebounds (we all hope soon) substantially, how is the market for selling these leaps that are very deep into the money. Why would anyone want to buy such an expensive leap?

Looking forward to your reponse.

David

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