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

To: Kayaker who wrote (41814)	9/19/1999 1:15:00 AM
From: Jon Koplik	Read Replies (1) \| Respond to of 152472

Who cares what it is ? Jon. eom.

To: Kayaker who wrote (41814)	9/19/1999 3:22:00 AM
From: PAL	Respond to of 152472

aren't you ignoring the collateral requirement on the naked short put in the calculation of the return? Of course I did. You can compare this strategy to Buy and Hold, or Sell Covered Call by ignoring all the cost of money, etc. Or to introduce a complicated model by allowing x% p.a. variation, throw in probabilties that QCOM will reach 240, 250, 260, ... 400 by Jan01 expiry date and calculate the expected values using margin interest rates of 9 %/year, I am sure that it still come out better. You are right about the stringent margin requirements for selling naked puts. 1. minimum equity: $ 100,000 Waterhouse, Schwab, Fidelity $ 50,000 Brown & Co 2. Maintenance requirement 20% to 30% of the underlying stock price plus current premium minus OTM amount 3. check the box that you have traded options before. Note: - Personally, considering QCOM has such a big run from the low 150 to 190, I do expect some dips before resuming the upward trend. Those dips provides trading opportunities. - Never think that any stock, whether gorilla or king or a super dynamic company will go up forever. Notice where AOL and CMGI currently; they have been viewed as no miss stocks. Even MSFT is not considered as the premier stock which would double or triple in the foreseeable future (to reach $ 1 1/2T market cap?). - Not to be afraid to cut losses in option trading by rolling to other stocks and/or later month. - greed in option trading is the biggest sin Best Paul