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

To: Voltaire who wrote (55077)	12/19/1999 8:56:00 PM
From: Voltaire	Read Replies (1) \| Respond to of 152472

Just wanted to add Jon Koplik and edamo to the option knowledgeable list. If your taste is Puts, Jill and Poet have a good understanding. V

To: Voltaire who wrote (55077)	12/19/1999 9:49:00 PM
From: Eric Daniels	Read Replies (1) \| Respond to of 152472

Please help me understand your post #55018) <You plan to sell all your qcom in the next 21 days and buy Jan 01 Leeps @450 for $130/sh with 60% of the sale proceeds.> There are three outcomes for Jan 01: Q is above, at, or below $450/sh If Q is above 450 You will have to see the Q at 580 (2/1 leverage created by 60% use of cash from sale (450 + (260/2)) to cover the premium and break even. This will not recoop your taxes paid on gain, if applicable. If Q is at 450 (unlikely) You will lose 60% of your present gain, the price of the calls 260/455. You may gain some from playing the dips, but tax and any timing mistakes can minimize profit & maximize stress. If Q is below 450 Unless it dips below 60% (the amount you invested in the worthless calls) and you buy in with your cash at that time, you will not recoup what you would have had if you just held. In summary, it seems the only scenario that holds potential for gain is the a one year price above 580. Why not just hold the stock through the correction? Regards, Eric

To: Voltaire who wrote (55077)	12/19/1999 10:55:00 PM
From: waverider	Read Replies (4) \| Respond to of 152472

V, for fear the Jose Cuervo is going to piss you off here (but I owe ya one anyway :), I think your idea is dumb. Look, the premium on Q Leaps is absurd right now. The only thing that I see as a reasonable move if you must do something is just hang on to the stock UNTIL the correction...then sell it to buy the LEAPs. That's what I did when we had that March correction and it was the best thing I've ever done. My broker was probably laughing because he thought I was panic selling...but the leverage I obtained with all that cash was amazing. And the premiums were very attractive... FWIW... Canyon Boy