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

To: jazzcat2000 who wrote (78054)	7/28/2000 7:25:59 PM
From: Jacob Snyder	Respond to of 152472

I posted my July 25 trade on July 25. Message 14105376 That's my definition of real-time. Usually, I do buy out-of-the-money LEAPs. However, looking at QCOM LEAPs, I may make an exception. The reason is that these are very expensive options, and the price doesn't decline very much as the strike price goes down, compared to LEAPs in other stocks I've bought. So, (IMO) the risk/reward balance (specifically for QCOM LEAPs) tilts toward at-the-money or in-the-money LEAPs, in preference to out-of-the-money. Given my 150 price target by 1/03, I calculate that LEAPs are preferable to stock, only if I can buy when the stock is around 50 or below (stock triples during the life of the option). With less expensive options, the risk/reward is in favor of options with only a double. If we don't get below about 50, then the stock makes a better investment, IMO. I have no idea whether the stock will get there (50 or below). But, if it does, I plan to take maximal advantage of it. I apologize to you and any other poster, if my self-confidence comes across as arrogance. When I first started investing, I thought most stock investors were careful, cold, calculating people who understood the companies they invested in thoroughly, and constantly balanced risk/reward. It took me a couple of years to understand just how irrational and ignorant and short-term so many investors are. I am still surprised by it. I do my best to take full advantage of this (Ineffient Market volatility caused by emotional decision-making). Someone is going to take their money, and it might as well be me.