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

To: Voltaire who wrote (46707)	10/31/1999 4:14:00 PM
From: gdichaz	Respond to of 152472

Votaire: Thanks. I have taken the liberty of posting your reply on the G&K thread for those few there who might not read it here.. Your description of your approach is very clear. And it seems very sensible as insurance. I will not try this now for this Q earnings report personally, since I have been a buy and hold person on the Q for so long and so successfully, but I will think about your strategy for the future - probably on other stocks. Many many thanks. Chaz (a.k.a. Cha2 on the G&K thread)

To: Voltaire who wrote (46707)	10/31/1999 4:17:00 PM
From: LLCF	Read Replies (2) \| Respond to of 152472

Nice try, but don't give up your day job to become an options strategist! <Most people seem to think that the greatest thing that can happen when they write a Call is for the stock to sit there and not move until expiration. WRONG! WRONG! WRONG! > No, you are indifferent as to whether the stock closes at the strike or 1 million points above the strike at expiration... any of these is the best scenario. Therefore your statement above is false.... there are any number of 'best outcomes'. <By employing the Covered Call Writing strategy there is nothing to really worry about. Now our counterparts are going to argue that by being Covered then we lose any opportunity to make any money past the premium we are paid on our calls, that is PURE BULLS---! > Your certainly on the wrong thread to argue what I think you've argued [your wording is off, you don't 'pay' for calls when you covered write. ]... covered write in Q after the ERICY news came out was certainly a perfect example of what 'your counterparts' correctly pointing out as a potentially adverse outcome to the 'buy write'. On derivatives, if you can't bark with the big dogs.... stay on your porch! <G> DAK