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

To: Labrador who wrote (26049)	4/4/1999 9:07:00 PM
From: voop	Read Replies (1) \| Respond to of 152472

lost the post I just made...sorry if appears twice. What if buyer of put exercises option to put the stock to seller before option expiration occurs? Would seller of put get shares on date of exercise or on expiration date? Thanks. Voop

To: Labrador who wrote (26049)	4/4/1999 10:25:00 PM
From: Jill	Read Replies (1) \| Respond to of 152472

re: puts, when volatility high, and premiums rich, and you're bullish on stock such as this, sell puts and use the extra $ to go long the common, if you don't mind margin held as collateral (but not like margin buy--no interest charged, no margin calls), put will expire worthless, get free $ to invest in equity--if you look at it as combined play on stocks you want to own it works well--again that's if you don't generally use your margin to buy stocks

To: Labrador who wrote (26049)	4/5/1999 9:45:00 AM
From: Art Bechhoefer	Respond to of 152472

Voop, to buy and sell options requires that you sign a form (SEC requirement) acknowledging that you understand the risks of options, and the fact that you could lose your shirt. Schwab, like any other broker, must have that form signed by you before they will do any options transactions. Selling puts, in addition, as per regulations, requires that you have a certain amount of capital on hand. Thus, you can't simply sell a put without having enough cash value to pay for the shares if the shares are "put" to you. In other words, if you sell a QCOM put with striking price of 140 and expiration next July, for example, you need to show $14,000 of buying power in the event that the whole stock market tanks, and QCOM shares fall, say, to 120. In that event, they'll surely put the shares to you, at your 140 striking price. This is not a kid's game. Generally, I suggest people avoid options altogether except for selling covered calls as a conservative strategy to lock in profits.