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

To: Ibexx who wrote (69208)	3/16/2000 10:48:00 PM
From: Ibexx	Read Replies (1) \| Respond to of 152472

The following is lifted from options expert Bernie Schaeffer's website: 8:45:19 AM A pair of near-the-money options in the April series on Qualcomm (QCOM - 128) saw heavy activity yesterday in what was likely the initiation of a mammoth straddle position. The April 125 call saw open interest rise to approximately 21,500 contracts from about 6,300 contracts at Tuesday's close. Similarly, the April 125 put saw heavy volume, which resulted in open interest rising to about 22,200 from around 6,700 contracts at Tuesday's close. The remaining options within the March and April series on QCOM were traded comparatively lightly. A straddle position is initiated by buying (in the case of a long straddle) or selling (in the case of a short straddle) the call and put with the same strike and expiration month. It is difficult to determine the motivation of the trader in this case with complete accuracy, although it is interesting to note that QCOM shares have been building a symmetrical triangle formation throughout 2000. This technical formation is generally resolved with a violent move, although the ultimate direction of the move remains to be seen. If this position was instigated as a long straddle position, the trader will benefit from such a violent move regardless of direction. Ibexx -