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

To: Poet who wrote (46864)	11/1/1999 3:45:00 PM
From: Kayaker	Read Replies (3) \| Respond to of 152472

I'm not the most mathematically sophisticated person on the thread (calling Jim Willie!) The nice thing about it is that it doesn't really require any math. If I buy a call and have decided to exercise it, and the only question is when, then it doesn't matter what I paid for it, and it doesn't matter where the stock price goes (unless of course the bottom drops out). The only question is, do I want to pay now, or wait til later (expiration day). Not a big deal with November options, but I've seen people say they've exercised LEAPS. Not good, considering all that could have been done with the money (paid for the shares) over the next 1-2 years. Just my 2«½. Perhaps one or two of the full time options trader types could add their 2ó½.

To: Poet who wrote (46864)	11/1/1999 9:05:00 PM
From: Jim Willie CB	Respond to of 152472

pretty much agree with CraigerMan by exercising this early, you forego the benefit of the paid premium... namely the ability to see more of the outcome suppose you originally bought the option call at 15 per contract... then your breakeven cost basis is 200 + 15 = 215... simply, it is worth it to exercise if Q exceeds 215, and not worth it under 215 a couple scenarios A: that premium allows you to watch Q rise to 250 (your exercise then makes you tingly in places we cannot discuss) B: that premium allow you to watch Q sell off to 210 like watermelons in a Mississippi summer (your refusal to execise leads to an internal struggle between emotions and rationale) either way, no need to exercise yet you be antsy, white girl what is new about that? you paid 2-3 points per week for the right to watch, and apparently you have seen enough... your choice / Jim