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

To: hueyone who wrote (117622)	4/29/2002 5:08:10 PM
From: Wyätt Gwyön	Respond to of 152472

hi huey, it's just a starter position to get my toes wet. i sold the Jan03 20 calls against for a debit of 18.10, upside to 20 in Jan 03. gross yield if called out of around 10.5%; annualized to about 14%. so i either own the stock at 18.10 net next January, or get called out with a 10.5% gain. at 18.10, i think QCOM would probably be fairly valued, so i don't mind earning 10% to see if it will happen. i probably won't buy very many shares unless it gets down to the low twenties or teens, at which point i would buy more and not cap the upside with calls. if anybody thinks it can't get down to the teens by next January, they may wonder why Mr. Market is offering a buy-write opportunity that annualizes to 14%. if there's no free lunch, then a play like this is not without risk. but to me QCOM is finally low enough where i can begin to take calculated risks, step by step.