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

To: RoseCampion who wrote (35319)	7/16/1999 2:58:00 PM
From: dday	Respond to of 152472

Have not followed your problem but I think I can surmise from this post that you are going to exercise some in the money calls this afternoon and need cash to cover the call from that exercise. You can sell shares to cover on Monday. They will then block your account for 90 days. All that would mean is that you would need cash or equity up front before making any additional purchases. They will not take your profit away if there is one. Hope this is the correct understanding on my part...........if not.........just ignore.

To: RoseCampion who wrote (35319)	7/16/1999 3:26:00 PM
From: Morgan Drake	Respond to of 152472

Rose - Don't sweat it. I went through the same thing with ETrade. You'll just need to sell shares to cover the purchase. Here's the key: no matter what they tell you, your equity in the option contracts must equal your equity in the final stock position. Once you determine that, you know EXACTLY how many shares you need to sell, so that at the end of the day, your equity in the stock is balanced equally by the broker's margin loan. Thus if your equity in the options is $100,000 then you know that that amount will support a 50% margin loan against the stock of also $100,000. Bottom line is that you will end up holding $200,000 of stock after exercise. You sell off stock and pay down the broker's initial exercise loan granted you to exercise in the first place, so that his margin loan is equal to your equity in the final position. You shouldn't have any SEC free ride problems. This is how it's done, at least at ETrade. I've done this myself. Morgan