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

To: EepOpp who wrote (29861)	9/23/1999 12:52:00 PM
From: codawg	Read Replies (1) \| Respond to of 74651

OT - (sort of) It's a personal preference, and I meant to let Jill know what I would do - but it may not be good advice for others. Yes, the reason is that you can buy more calls, and that I am bullish on QCOM over a period of 3+ months. I would be less speculative over a shorter term (like Oct or Nov) and probably buy calls that are 10-15 bucks in the money. If you want a leveraged position without much premium, then you are better buying calls well in the money. These are safer than calls near the money, and have a much higher delta, but offer smaller relative return on your investment. If you are extremely bullish and think that you would like maximum return, then you go well out of the money. On this call I thought it would be a good idea to stay close to the current strike, which is basically in between the two extremes. Premiums are huge, though, and it's always a balance of risk vs. reward. There really is no right answer until you know where the stock goes. BTW, I'm still holding those calls. As long as QCOM wants to go up 7 or more points a day, I'm not going to get off the bullet train.