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

To: Clarksterh who wrote (14565)	9/4/1998 4:32:00 AM
From: Skeeter Bug	Respond to of 152472

clark, their are strategies to use short term instruments (options) as long term investments. this shouldn't be surprising. the day traders have been using long term investments (stocks) as short term investments for a long time. you do have to be disciplined, though and not pay too much commissions. one such approach is to buy in 1/3 positions and use a 90/10 system - 90% cash, 10% available for purchases. mike burke (has his own thread) developed this system. btw, writing covered calls is a high risk, low reward game in my book. i'd never do it. you own all the downside but limit your upside. i'd rather buy puts and own all the downside and limit my loss. i also never short. i buy puts instead. many people buy puts to hedge long positions. try selling covered calls on qcom when it was $70 and try buying puts. the puts woulda returned way better than the covered calls. good luck.