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

To: Caxton Rhodes who wrote (46686)	10/31/1999 11:44:00 AM
From: Voltaire	Read Replies (1) \| Respond to of 152472

Caxton, You and Chaz have presented two good Questions, yours is a totally different game with other implications which BTW I use. I am planting some Pansies right now and I am answering these questions during my lemonade breaks. I'll get back with you guys.

To: Caxton Rhodes who wrote (46686)	10/31/1999 5:11:00 PM
From: Voltaire	Read Replies (1) \| Respond to of 152472

Caxton, what you say is true but when I want insurance I try to get pretty well on the money calls because the Delta is higher and therefore the sought out insurance is closer to dollar for dollar. What I use your method for is to tell the broker for me and my clients to kiss my Ass when I are they receive a margin call. 1. Lets say I have 10,000 shares of QCOM at $225 per. 2. The next day it drops 30% and I receive a Margin Call. 3. My broker says " hey big-shot " your stock has dropped about $67 per share and you need to come up with $10 per sh. or $100,000. he thinks I am going to start Crying but I don't. 4. I tell him to sell the 2002 Leaps for $65 per share ( they would have come down from $80 on the drop) and I give him his lousy $10. 5. Then I tell him to give me the remaining $55 per share and because of my margin status, put another $55 with it for a total of $110 per share or $1,100,000 and I tell him to buy me another 7,000 shares of QCOM and I keep repeating this process as long as necessary and when the market turns I will ride the wave back up with over 25,000 shares. Even if I do not buy back the Calls, I will make great money because the leverage is now in my share number. This is why I have never had to give up one share of stock with a margin call but actually increased my share count. THIS SHOULD ONLY BE DONE WITH A QUALITY ISSUE THAT ONE FEELS WILL TURN BACK UP WHEN CONDITIONS ARE FAVORABLE. Did this with Dell about three splits ago and took shares from 12,000 to 24,000. Stock recovered in about five weeks. I believe it was July summer before last. But you are correct, Leaps are powerful tools because of the cash they generate. Again from the porch, Voltaire