While the conventional wisdom says you face the need for early sale (6 months or so), if the Q does succeed with its data tornado mobile wireless to internet strategy, suggest that the Jan 2003 Qualcomm LEAPS should be a'leaping toward the end of 2002, so holding to then is a reasonable risk regardless of what the "book" may say on time decay. The time decay will be gone and the Qualcomm LEAPS will follow the stock - perhaps even up - hard as that may be to envision these days.
Funny how you guys should bring this up. I picked up a truckload of Jan 2003 $60 today for about $2300 per contract. I went with the $60s because I am planning on holding these things through most of 2002. When the time value runs out, being in the money as far as possible is all that determines the value of your LEAPS. So I went with the conservative $60 strike price.
I did want to just buy the underlying shares. But given as many shares as I wanted to buy I'd have to either sell too much other stuff off or go into margin hawk far higher than I am willing to go. So the LEAPS seemed like an excellent substitute.
Please don't tell me we are gonna have to wait until 2002 for some Q appreciation though:( Patience, patience.
So I ask for a: Heil the Q, oh Mighty Q!
All right, all right, can't blame a guy for a little cheerleading;)
Tinker
P.S. I sold off RNWK to gather some funds. Now that I'm down to AMCC, BRCM, CREE, GMST, NTAP, and Q what will I do with my time? I mean all these stocks only require occasional monitoring and clever conversation.
Maybe I should pick up some Globalstar just to make life interesting again (really, is low risk/high return long-run profits enough for any one person?;) Even Uncle Frank started his own index fund for kicks and giggles). |
