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

To: Uncle Frank who wrote (128925)	5/12/2003 12:26:36 PM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 152472

UF, going long on a call (presumably with an expiration date of two months or more) means paying a premium, which tends to be rather steep. Selling a put, instead of buying a call, allows one to profit from the premium when the expiration date is at least a few months in the future. To leverage a position, one might just as well buy on margin than buy calls for anything but the current month, where the premium is low. The real question is whether QCOM shares are underpriced. If you look at the fundamentals and compare with other growth stocks, particularly in the technology/telecommunications area, then there is no doubt the shares are undervalued. If you look at all the recent derogatory comments from analysts, TV commentators, and continuing comments from major investment firms, then there is good reason to believe the shares may continue to underperform the market, and in particular, the tech stocks as represented by the NASDAQ index. Art