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

To: Jeffry K. Smith who wrote (55294)	12/20/1999 9:42:00 PM
From: JGoren	Respond to of 152472

I don't do long-term options in Qcom so I am not the one to give advice. Over the weekend, there were a number of posts discussing how stock dividends affect options. Do a word search or maybe someon who remembers them will give you the posts. Try searching under people for Voltair and then stock dividend; see if that gets you to one of them.

To: Jeffry K. Smith who wrote (55294)	12/20/1999 9:54:00 PM
From: Farfel	Read Replies (1) \| Respond to of 152472

I don't believe a "stock dividend" is anymore than the issuance of additional shares --- in other words, when Q splits 4/1---effective December 30----that day all owners will receive an additional "dividend" of 3 shares---thus each owner will receive 4 shares valued at 1/4 of the current price of Qualcomm. This would NOT impact any calls held by owners-----each call would merely reflect the stock split (dividend). For example, a January 2001 Leap strike price of 440 would now become 4 January 2001 Leaps strike price 110-------thus both the stock and the calls stay uniform and just are divided to reflect the split. This has NO negative impact from what I understand at all in any way upon anyone holding calls, puts, or other derivatives. In fact, it can be advantageous to someone who might like to soften his position by selling 1, 2, or more of the now 4 calls he/she holds on Q------and I do buy Leaps. Farf

To: Jeffry K. Smith who wrote (55294)	12/20/1999 10:30:00 PM
From: Jon Koplik	Respond to of 152472

A stock dividend is identical to a stock split for all useful purposes. The only difference (I believe) is -- one changes the par value of the common stock shares, and one does not. No one should ever care about par value (except lawyers drafting securities registration documents). Georgia Pacific (and Disney) used to declare these incredibly irritating 2% and 3% stock dividends many years back (1970's, 1980's) (yes, I am old enough to remember). All that these stock dividends accomplished was to REALLY screw up listed options on these stocks, and make keeping track of one's basis in a stock a real pain ! Jon.

To: Jeffry K. Smith who wrote (55294)	12/20/1999 10:38:00 PM
From: Jon Koplik	Read Replies (2) \| Respond to of 152472

Further "blather" about stock dividends -- IF Qualcomm declared a 3% stock dividend, all of the option exchanges would have to change all of the existing listed options like this : Old QCOM 460 calls (the right to buy 100 shares @ 460) would become the right to buy 103 shares of QCOM @ 446.60. (I think I am doing the math correctly. No guarantees). Then, any new series of options started after the date that the 3% stock dividend went into effect would be back to nice round numbers. I have always thought that corporations choosing this type of stock dividends are just trying to confuse things. I think they are hoping that somehow, everyone will think : "XYZ Corp. stock was usually around $40. Now it is $39. I guess it is down a little; I think I'll buy some ..." Jon.