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

To: puzzlecraft who wrote (30465)	5/20/1999 5:17:00 PM
From: Morgan Drake	Read Replies (2) \| Respond to of 152472

Tomorrow is options expiration day. Monday could see a sell off. I suspect that a huge number of the option positions on Q are way in the money, but not so much as to provide a free ride to the stock. For example, I have a bunch of May 70s. I'll do nothing and my broker will exercise all my options cause they're more than 1/4 point in the money. Come Monday a.m. my option position will be replaced by the number of shares under contract. However, there won't be enough cash in the account to cover the purchase with equity and a broker margin loan. In order for me to get a free ride, Q would have to close tomorrow at 140 (unlikely). So I'll get a margin call, and will probably have to sell off about 15%-20% of the stock so as to remain 50% marginable on the remaining Q shares. I reckon I won't be alone.