Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 176.37

-1.6%

3:58 PM EST

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To: PAL who wrote (76368)	7/12/2000 1:46:58 PM
From: waverider	Read Replies (3) of 152472

In regards to this, I picked up on Mucho's put trade and did some analysis that seemed a good play. Sell Jan $45 puts at 6 7/8ths which I did. This would lock up $45000 in capital per 10 contracts which would have been able to get you 849 shares of QCOM at 53. Let's say the stock goes above the gap around 58 and stays there, convincing you we are moving up again. I assume the cost of selling to close your put position could be done so around $4? The $3 premium you kept ($3000) plus the $45000 in free capital would give you 827 shares of QCOM...not a bad trade considering the potential downside that is possibly eliminated and the premium gained. Hope all that made sense. Anyway, with that assumption, I figured the $45 puts were a good play here with my trading money and did the above yesterday. I've also been buying 2003 $80 LEAPs around 53/55...half committed. I'll do the rest when we seem to have a new upward pattern. This is the trading account I put aside and NOT my nest egg which shall remain in cash until we get some more upside on Q to provide a lifestyle cushion...which was nearly lost recently. Mucho, hope I'm not on that ignore list :) Rick

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