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

To: y2kate who wrote (57184)	12/28/1999 2:01:00 PM
From: codawg	Respond to of 152472

<<Should I hold til expiration if I go this route?>> Yes you should almost always hold until expiration. No reason to eliminate the "option" to exercise for which you've paid a generous premium. If something catastrophic happened to the market or the stock - however unlikely - waiting until expiration never hurts. << I assume I'm deferring taxes on the unrealized capital gain on the calls I exercise>> Your cost basis on the exercised call becomes the strike price plus the commissions and the cost of the option. The taxable event is deferred until you sell the stock.

To: y2kate who wrote (57184)	12/28/1999 2:16:00 PM
From: Ritch	Respond to of 152472

y2kate - Should I hold til expiration if I go this route? Yes (IMHO). You will get the stock at that price regardless of when you exercise them, so why commit the money any sooner than you have to. I assume I'm deferring taxes on the unrealized capital gain on the calls I exercise- is that right? That is correct. The cost of the options are added to the cost of the newly purchased stock. The holding period on the stock however, starts the day you exercise the option, not the date of the option purchase. I believe this all to be correct, but you should always check with an accountant if you have any doubts. Ritch

To: y2kate who wrote (57184)	12/28/1999 2:20:00 PM
From: Jim Willie CB	Read Replies (2) \| Respond to of 152472

same boat as me... some thoughts on conversion first, nice if holding only a few and awaiting the split two contracts now will become eight in a few days now sell one, convert one shows limited alternatives friend in same exact position Friday will show you with eight contracts you could sell 4, convert 4 you could sell 3, convert 5 you could sell 2, convert 6 (using some extra cash) converting to shares has no tax consequences since it is a purchase, not a sale... you have no gain at all unless you sell... you instead jump into a strong paper capital gain... cost basis is strike price plus option initial cost really tough call on holding or converting to shares at the expiration date... we may have some selling in the first or second week of new year, from people who have been waiting eagerly to sell with tax year2000 consequences... then again, after the split, tons and tons of small (naive) investors will be piling into theQ... they are naive not for buying theQ, but for waiting until after the split when sitting in my Schwab office in Brookline Mass this lunchtime, I overheard some guy singing about QCOM... he intends to buy some shares after the split on Friday... lots of people like this I am still sitting on the fence as to pulling the trigger and converting to shares next week... I anticipate a brief pullback early in the first week, followed by a big runup again... maybe I will convert half next week, and convert the other half near the expiration as for converting to shares with options containing some premium, forget it if deepinmoney calls... my Jan280 calls seemed rather pricey on Nov3rd... not no mo... they contain zippo premium, now trading at parity... converting prematurely would however sacrifice some leverage though big gainer today is Qiao Xing on Nasdaq, up 200% they plan to build CDMA cellphones for Chinese subscribers way cool / Jim