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

To: gdichaz who wrote (56140)	12/22/1999 9:55:00 PM
From: Poet	Respond to of 152472

Nice post on LEAPs, Chaz. You're now a certified expert on the new thread. :) I think that, with a stock like QCOM, which is just in the beginning of tremendous growth over the next few years, buying as far out of the money (higher than where the stock is currently trading) as you can get is reasonable because the (relative) discount to the in-the-money LEAPs may enable one to buy more LEAPS, hence getting the leverage of more shares. If QCOM continues in a strong uptrend over the next year or two, your out-of-the-money LEAPs become in-the-money relatively quickly and you then benefit from a higher delta (that is to say, when a call is deep-in-the-money, it moves almost point for point in value with movements in the stock price). My tactic has been to purchase LEAPS on significant pullbacks in QCOM (and we may have one here), the reasons being that 1.) The cost of the premium is a bit lower and 2.) I feel more comfortable buying, say, a 500 strike when I see QCOM has been at that level before. I know this dense stuff, but thought I'd start it tonight. Lots of good posts on LEAPs here over the past few days.