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

To: Uncle Frank who wrote (92157)	1/19/2001 5:59:44 PM
From: Ibexx	Read Replies (2) \| Respond to of 152472

UF, Your intention of buying calls to leverage is fully justified. However, when you choose to buy a near-money, front month call of a stock not quite in an upward trend, the market makers would tend to artificially depress the stock price in order to render the calls worthless. This is relatively easy to do in the absence of strong buying pressure. The MMs would not be able to do this if there is considerable buying pressure, ie. stock in an upward channel. For additional explanation, I refer you to teachings of www.schaefersresearch.com Ibexx PS: calls are fine for stocks clearly in an upward trend; ie. AMCC SEBL, etc. PPS: QCOM is currently in a down trend as it's been trading under its 200 ema which also points down for the moment. Many traders use the 200 ema as a major criteria for trend reversal.

To: Uncle Frank who wrote (92157)	1/19/2001 6:32:26 PM
From: TShirtPrinter	Read Replies (2) \| Respond to of 152472

Greetings Uncle Frank, You know I'm no pro here, but I've had a pretty good time selling out of the money, short term covered calls on some of my LTBH positions, if there is a pop a couple of weeks before expiration. Today's examples are QCOM 85's, NTAP's 70's, SEBL's 80's, CREE's 40's and NT's 37.50's. Only will lose the NT shares at a profit. I only mentioned the Max Pain as one more reference. The premiums equaled 1/4 of my day job's annual salary. Isn't this what the books mean when they say 9 out of 10 options expire worthless? Oh well, the real "pain" may be you'll have to shake my hand again in San Diego <g> Tony