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

To: Claude who wrote (58162)12/30/1999 1:30:00 PM
From: GRANOLA  Read Replies (2) | Respond to of 152472
 
RE: "why do shorts need to cover today...", anyone crazy enough to short qcom will, as of tommorrow, be increasing their loss risks 4X. In other words, for every point qcom goes up after today, they "lose" a point on 4X as many shares.

just like for anyone long, after today, for every point increase in the stock we win X4 since we have 4X as many shares.

hope that helps...cheers, GRANOLA



To: Claude who wrote (58162)12/30/1999 1:34:00 PM
From: Voltaire  Read Replies (2) | Respond to of 152472
 
Hi Claude,

First of all I disagree that it is the MM's that are short anyway. Don't get me wrong, there are plenty of times that they short but they are not in that business. It is the individual investor and other entities that will cover this afternoon in my opinion and their reasoning would be not to have four times the exposure on a possible big move to the upside after split.

V


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