Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 151.59

-0.4%

Jan 30 3:59 PM EST

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To: gdichaz who wrote (12961)	7/25/1998 10:41:00 PM
From: Ibexx	Read Replies (1) of 152472

At the risk of annoying Ramsey, I'd like to offer my thoughts on Q LEAPS, but Ramsey, I promise to make this short. <g> QCOM LEAPS, calls and puts, both command very rich premiums because of its high market volatility (ref. to Black Scholes equation in any options book). Thus one needs to be an astute timer to pursue a ST or IT call strategy. However, an alternative approach would be to sell puts at intermediate lows, not only you could pocket the rich premiums right away, but also the exponential time decay (provided that the expiry is less than 9 months away) would work in your favor. Okay--that is all the time Ramsey allows me. Ibexx PS: In the past, I have played put-selling and call-buying on Q, but the former seems offer better risk/reward ratio, whereas for a "steady" stock like AirTouch, the opposite is true.

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