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

To: T L Comiskey who wrote (64733)	1/27/2000 1:37:00 PM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 152472

Tim, although you don't get as much per contract when you sell just one month out, the premium you sell will decay a lot quicker, and you can repeat the process next month if you like. Compare that to Julys--six months away. So assuming your Feb contracts expire worthless, you could do repeat premium sales each month for Mar, Apr, May, Jun, Jul--five more times (and skipping a month if you "fear" a big announcement)...adds up to more cash in hand. Also, you won't be "locked into" today's low volatilities (and hence low premiums) for more than the month of your contract. And if the underlying price increases, you can just ratchet up your strikes to a perceived "safe" level. Personally, I would rather be on the buying end of options at these levels...accumulating Jan02s.