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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?


To: Morgan Drake who wrote (32557)6/17/1999 9:27:00 PM
From: JohnG  Read Replies (1) | Respond to of 152472
 
Morgan--Makes sense, assuming the stock doesn't drop back causing you a margin call & sale resulting in paying ordinary tax rates on the gain.

John G



To: Morgan Drake who wrote (32557)6/18/1999 2:22:00 AM
From: Tlac  Respond to of 152472
 
If I exercise now, and the stock goes to $150, I have an additional $600,000 in margin borrowing power. If I don't exercise, and the stock goes to $150, the options have no margin borrowing power.

Morgan,

If you wait till expiration to exercise, and the stock goes to $150, you will need to sell less shares to cover the ~ $1.2 M, leaving you with the additional ~ $.6 M in equity you seek.

I would hold the options until expiration to forgo interim margin call risk.

Kelly