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

To: Neal davidson who wrote (56630)	12/24/1999 3:33:00 PM
From: RocketMan	Respond to of 152472

Your question, apparently a rhetorical one, assumes one fact that simply cannot be assumed: That QCOM will continue to go up quickly and at such a rate as to allow the LEAP to ultimately be profitable. Yes, of course, my comments on leaps have been under the assumption that the stock will appreciate considerably. I didn't mention that, thanks for pointing it out. I have made some great profits holding LEAPS. But I have also taken a loss on LEAPS where the underlying stock has gone up....just not enough. Had I owned the common, I would have had a small profit. Instead, I lost my entire investment when the LEAP expired worthless. That brings up the interesting question of when to close your leaps if the underlying stock is not appreciating as much as you planned. Probably a better question to be addressed once the options thread is set up. I have heard that 6-9 months prior to expiration is the knee on the curve for the time value to begin deteriorating, so I suppose one should not wait beyond this point. Also, that is why buying out as far as possible seems the best strategy, as has been pointed out by several on the thread, to allow the stock to appreciate as much as possible and ride out any near term stock or market corrections. Happy holidays.