Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Jill who wrote (28985)	9/1/1999 4:57:00 PM
From: t2	Read Replies (1) \| Respond to of 74651

Jill, I am holding onto QCOM. I won't be trading my core holdings. The earning growth still looks pretty good and I think the buyers will come back in soon. Looking to hold until at least January 2000!!! (That should surprise you) Just not thrilled by the decline today but i am going to be patient since i am convinced it is a good company to own. The narrowing of spread on leaps: For example--a few months ago, if you wanted to buy near the money calls on MSFT---let's say Jan2002 with 100 strike price. The quote you would have received would have looked something like this --bid 25 ask 27. Now we are seeing something like bid 25 5/8 ask 26 3/8. If you buy at "market" price, you pay 26 3/8 and if you sell right away you get 25 5/8. Your loss is only 3/4 per share instead of $2 as in the old days. Of course you would not want to sell right away. You could always have thrown a bid at 26 (when b=25; a=27) but you may not taken by a seller until they see deterioration in the MSFT stock price itself. In addition to the narrowing of spreads, if the volume also picks up; you could try to split the bid and ask and probably get filled. Check out this page which lists all MSFT options and notice that you don't see those $2 spreads anymore. It makes trading a lot easier. edreyfus.com