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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (5794)	9/1/1999 4:25:00 PM
From: StockHawk	Read Replies (1) \| Respond to of 54805

Uncle, Part of the point on options, I think, is that they are NOT only for short term speculation. In the case of QCOM, options currently available extend to 1/02, over 2 years away. And any option player can "roll out" an option position, thereby extending the position indefinately. IMHO identifying a gorilla or King is the largest part of the battle, but it is not the only issue. When/how to buy is also important. For example, I thought QCOM was a good buy today at $170, but purchasing 100 shares would cost $17,000. If the stock moved to $200 by year end that would translate to a $3000 profit, which is a 17.6% return over 4 months. Not bad. But as an alternative, a Jan, 2000 call with a strike price of $100 might have sold for $75. That call, because it is deep in the money, has a minimal premium - just $5. Buying the call is similar to buying the stock, but requires a smaller cash outlay. You could buy one call for just $7500. Alternatively, you could buy two of those calls for $15,000. If the stock is at $200 at year end the profit would be $5000 or 33%. Same stock, same bullish stance, similar cash outlay and similar risk factors - but the option play could be the better investment. Again, IMHO, maximizing our investment is a good part of the discussion. In a similar vein, a discussion of technical analysis - ie. when to make a purchase or when to hold off, based on the stock chart, would also be valuable. In the case of the Q, TA may have shown that the stock was extended recently and that people wishing to add to their holdings might be better off waiting a bit for a pullback - or they might sell a covered call that could be closed out if/when the price of the stock fell - a la Buffet. Frank, I think this is the best stock thread in cyberspace - and you are the boss here. If you wish to restrict the discussion in any manner, please know that I will abide by your decision. StockHawk

To: Uncle Frank who wrote (5794)	9/1/1999 5:46:00 PM
From: Percival 917	Respond to of 54805

Uncle FranQ, (no capital M), I agree with your statement I found the conversation about investment vehicles to be an interesting diversion, but I would like to see us re-focus on our primary mission, which is to discuss great stocks in the context of the Gorilla Game. I have found myself asking about the options also. I can do more studying on that on my OWN time. My primary interest is to buy the emerging gorilla and HOLD. There are still great companies out there crossing the chasm, in the bowling alleys, or getting ready to enter their own tornado.