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

To: engineer who wrote (45816)	10/22/1999 5:09:00 PM
From: jmac	Respond to of 152472

Safe is getting a great return with little risk. Yeh, I know you lose the stock. I have been buying and selling calls and puts and doing covered calls for decades. I was just pointing out that you could get almost a guarenteed 30++% rate of return by buying Q and selling at the money calls for 2001. But, more impressive is the fact that you can buy the Q now and sell the Jan 2000 call at 215 and get 27 points. For three months, that's 27/216 or 12.5%. I wouldn't mind taking $216,000, bringing in $27000 and holding at low risk for 3 months. As it stands, I did that a few months ago in my IRA and locked in a gain of about 40% in 5 months when the stock was at 165. Yes, it hurts to see the stock soar. But, 40% is 40%. I also hold the Q Nov 180 calls long with the Nov 240s short. I'll be glad when the Q splits. I'll buy some stock then as well as play the calls.

To: engineer who wrote (45816)	10/23/1999 10:00:00 PM
From: LLCF	Respond to of 152472

<I am confused. If a stock is as volitle as QCOM and it is rising 100% per year, how can writing covered calls against it be "safe"? Seems to me you almost always loose your stock. Why not buy in the money calls and then sell them at a later time? Seems like alot safer moeny than covered calls. Just an opinion.....> No, not just an opinion... a stock with Q's upside derailed only by some wacky new technology your strategy is 100% correct. If you have reason to try and time a market move or a Q plateau... I suppose maybe buy-write at your own risk. DAK