Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 170.90

-1.3%

3:59 PM EST

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To: Ibexx who wrote (92158)	1/19/2001 6:50:36 PM
From: Uncle Frank	Read Replies (1) of 152472

Just to make it clear, I have no intention of buying calls at the moment. I was just confused by your comments. >> when you choose to buy a near-money, front month call of a stock not quite in an upward trend... It's always risky to buy a call, doubly so if the underlying equity is in a downtrend, and particularly so if it's of short time duration because time value is always in a downtrend. The only reason to do so is if one suspected information was about to be released which would lead to an uptrend before expiry. Otherwise, only a sucker would fight the tape. >> ... the market makers would tend to artificially depress the stock price in order to render the calls worthless. Basically you're restating the thesis for the max-pain theory. I've always found it to be an attractive and logical premise, though I've yet to see a significant degree of correlation substantiated. Thanks for the explanation. uf

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