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

To: quidditch who wrote (51974)	11/29/1999 8:46:00 PM
From: Jon Koplik	Respond to of 152472

To all - amazing post from "PAL" on buying more QCOM + selling calls + selling puts (see example # 2 below). (I view this as an astounding income producing technique, totally separate from one's core holdings of QCOM -- which (I think) should NEVER be messed up by having any sort of option position against it). (PAL's idea is pretty much foolproof ... IF you have no problem at all potentially accumulating more QCOM (at a lower price than today's price). Here is the post (back by "popular demand") : ********************************************* SI: StockTalk: Communications: Qualcomm - Coming Into Buy Range To: Rose_Campion who wrote (41777) From: PAL Saturday, Sep 18 1999 10:41PM ET Respond to Post # 41805 of 51982 Rose: Here are some interesting plays on QCOM options: 1. Jan00 expiration: If you are bullish and expect than QCOM is > 192, then buy AAOAT Jan00/200 call at 22 1/2 financed by sell AAOMS Jan00/200 put at 30 1/2, net credit $ 8/share anything over $ 192 closing is profit. Risk: QCOM closes below $ 192. Events: Nov 3rd earnings report, Y2K concern, Oct phobia, January effect, money flowing back into the market after realizing that the impact of Y2K is minimal, election year. 2. 97% return in 15 months: a. buy 100 shares of QCOM at 190 (or multiple thereof) b. sell ZNOAR Jan01/190 LEAPS covered call at 53 c. sell ZNOMR Jan01/190 LEAPS naked put at 40 collect $ 93, hence your net outflow for QCOM is $ 97/share. On Jan01 expiration: If QCOM closes above 190, $ 93 profit on $ 97 investment or 96% in 15 months. If QCOM closes below 190: own 200 shares with average cost of (190+97)/2 = 143 1/2 per share. So if QCOM is higher than 143 1/2 you make money. Note: some may think that 96% return in 15 months is too low ... VBG Good Luck trading Paul