Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 174.64

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2:41 PM EST

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To: Art Bechhoefer who wrote (95367)	3/7/2001 7:54:02 PM
From: Jon Koplik	Read Replies (1) of 152472

A dissenting opinion on "selling a put option is best done with a fairly distant expiration date in order to take advantage of the premium attached to the option." If you look at the price of a certain put option out ... say ... 6 months. And then you look at the price of a put option for that same strike price, but only 1 month out. And then compare the amount of money you would receive if you successfully do ("do" meaning : have the option expire worthless) the one month one a total of 6 times. You will find that you would much rather do the 1 month put option. (I am aware that things are not so simple. The main "all things NOT being equal" is -- the underlying stock skyrockets during month number 1, and you do not get the chance to do the same strike price naked put ... the last 5 times). But, in general, I have found that I ALWAYS want to do the 1 month naked puts, not the longer dated ones. Jon.

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