Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (21362)	10/11/2001 9:05:38 AM
From: stockman_scott	Respond to of 52237

08:49 ET QUALCOMM (QCOM) 44.90: -- Update -- Regarding the JP Morgan upgrade noted in the 7:04 comment; firm cites as reasons for the move: likely market share increase in CDMA ASICs in 2002, cdmaOne infrastructure shipment confirmation to China Unicom suggests increased QCOM royalties, end-demand for CDMA to exceed overall handset growth.

To: yard_man who wrote (21362)	10/11/2001 10:27:34 AM
From: donald sew	Read Replies (2) \| Respond to of 52237

Tippet, >>>> interested in understanding the strategy and how you implement it <<<< Sold the QQQ OCT 32's for 2.35 against my JAN 04 25 leaps which I originally got at 9.50 on SEPT 21. Those 32's are already up higher, so as normal I sell too early, but I did get in quite timely. Im suspecting that by next FRI(option expiration) the QQQ's could pullback to the 32 region or lower. If by next FRI it closes below 32 I will keep the full amount of 2.35, if I hold it that long. Lets say that by next TUE/WED the QQQ's hit 32, my guess it that I could buy back those calls for about 1.00 or less, thereby I would pock about 1.35. Since I originally bought the leaps for 9.50, I have a fair chance to pocket 10%+, and possibly slightly above 20% if everything goes perfect. If things go wrong and the market just rallys straight up. I limit my upside on the LEAPs, since I will buy back in-the-money/profitable to the buyer calls. The other downside risk that would put me in a losing position on my leaps would be if the QQQs tanked to below 25, since I bought the original leaps when the QQQ's were around 27 and change on SEPT 21. Hope that helps explain the strategy.