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

To: Art Bechhoefer who wrote (128928)	5/12/2003 12:57:35 PM
From: Uncle Frank	Respond to of 152472

I agree that there's a mismatch between Q's fundamentals and Mr. Market's valuation, but I'm not enthusiastic that this will be corrected in the short term, Art. As such, I don't like the odds of writing a short term in-the-money put. Q's currently trading at 31.13, and the bid on a July 35 put (aawsg) is 4.60. Since the intrinsic value is 3.87, the time premium is only .73, or 2.3%, which I think is too little to justify the risk. But that's jmho, and from our conversations on the options forum, you know that I've never favored put writing. uf