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

To: Peter J Hudson who wrote (118997)	5/20/2002 7:59:54 AM
From: GO*QCOM	Respond to of 152472

More good news:QUALCOMM Enters Into a CDMA2000 1xEV-DO Design Transfer Agreement with Huawei Technologies Co. biz.yahoo.com

To: Peter J Hudson who wrote (118997)	5/20/2002 10:19:55 AM
From: Stock Farmer	Respond to of 152472

Peter, For example, if I sell OTM covered calls with a strike of 35 and receive a $3 premium, for this example assume my cost basis for the shares is $30. The stock price increases to 40 before option expiration, the shares are called away and sold by the option holder. The writer receives $38 (35+3) or $8 gain. The option buyer pays $38 in premium + strike and sells at $40 for a $2 gain. Where is the cost? Who lost? LOL.. you did. Even though you gained. Irrespective of writing the option or not, the shares produced wealth for shareholders of $10 But you wrote an option that cost you $2, and so you net out with $8. No matter how you work the math of strikes and premiums, you will find that the sum of value always works out to $10, and whatever the option holder gets (or loses) is a cost (or benefit) to the shareholder. John