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To: jmac who wrote (1007)	1/19/2000 2:48:00 PM
From: im a survivor	Respond to of 35685

<<Owning calls rather than stock provides a hedge on a wild swing to the downside. >> Yes, to a point you are correct. However, I think we most all agree that long term qcom looks good...well, more then good in my opinion. Although you are at less short term risk with a call vs long stock, the call guarantee's a loss if the stock stays down, while holding long you have not lost a thing unless you sell. We can agree that qcom goes much higher, so why risk losing dollars on a short term call, when you pretty much know you will make money just holding the stock long. Then add in CG tax for selling your long and it makes it even worse. Assume you spend $5k on a few calls, and they expire worthless. a month...3 months....6 months.....eventually, you will be way ahead with a nice gain if you simply hold the stock. Why take that $5k loss. Typically I do agree with you to a point. In many situations Calls are excellent. However, I stay away from the short term one's...leaps provide a much better chance of a healthy return with far less risk. Additionally, as I said, I feel you cannot have enough of this stock. In 2 years when we are up XXX%, we will all wish we had stocked the farm at $140. With this in kind, I refuse to sell my qcom. I am buying leaps on these dips and I am writing covered calls against my long position, but I am buying those back...for instance...last week I wrote 10 AUAAJ Covered calls and got a nice $9 premium ( $9000 ). I bought them back for 7/8...turned around and wrote more for a nice premium and will buy those back much lower and etc, etc...I am aquiring leaps at great prices, making a nice premium on writing CC's against my long position while keeping every share of my Qcom for the big gain we will most assuredly have over the next few years. Anyway, I always say...to each his own, so whatever you do, I wish you the best of luck. Keith