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

To: freeus who wrote (61393)	1/11/2000 1:24:00 AM
From: engineer	Read Replies (3) \| Respond to of 152472

Same thing the other 5 people told you on this thread. Get one or two and use the marginablility of the stock to get the rest. Don;t sell a couple of options to buy the whole lot, but rather do it in steps and get them all, ending up wiht them providing the equity to margin the cost of buying them. The example that Diamond had, they were cheap enough to buy the first one out of some kind of cash account and then use this one to buy the rest. Example he gave was that it was a $176 stock with a Call option at $40. He had 10 contracts. So buy the first one wiht $4k that you get somewhere (credit card, mother in law, etc...). then you have $17,600 worth of stock. Now borrow $7040 from that 100 shares to get the next 100 shares. borrow another $7040 from those shares to get enough to buy the next 200 shares. then use the $14,080 to buy 3 more contracts. Each excercise takes about 3-4 working days, so this scheme cannot be done at the last minute, but rahter in the last 2 weeks before options expriation. In the end, you then borrow on margin the $4k and pay off the credit card as well. In the end you have borrowed $40k and have gained $176k in stock. So your margin is at 22% in the end. Now the second time you do it, you have another $31000 to use for hte next options that expire left over on margin. NOT ROCKET SCIENCE....