The New QUALCOMM - Coming Into Buy Range Message Board

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Technology Stocks : The New QUALCOMM - Coming Into Buy Range

QCOM 174.01

-0.3%

Nov 14 3:59 PM EST

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To: thinkclear who wrote (1035)	8/21/2007 10:57:22 AM
From: carranza2	Read Replies (1) of 9129

I have no problem with your calculation. It all depends on how Paul views his cost basis. If he has reduced it to a negative thanks to options, then it is crazy to get rid of the shares. I am not enough of an accountant to make an informed comment on whether Paul is justified in considering that options have reduced his cost basis. I can see reasons why one would justifiably think so and I can see reasons why one is not. My gut tells me that the options should not be considered as reducing the cost basis unless he used them to actually buy shares, in which case the negative cost basis is likely non-existent. Still, there is a lot of merit to thinking of Paul's trading in Q as being part of a whole, i.e., a total investment of X dollars in shares and options has resulted in Paul holding Y number of shares which cost a total of $Z and yield .56 a year.

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