This stock will probably not pullback much since the drop came from 46 before new ER 37% increase in last Q , this data is stronger then EU suits so it should work higher toward next Q ,ER which I think it will comfortably beat. QCOM will not make such bullish forecast unless they are pretty sure about beating estimate due to new SEC law against questional bullish forecasting. No gains to be bullish unless sure.
About ER suits by 6 phone makers, it's worthless case since 5% royalty rate is so common , When I use to work for multinational drug cos, we paid 5% royalty to patent holders at first dealing with pre-printed contracts before even got into evaluation phases.
So looking at these factors, this stock is ready to resume upward on year end rally if it sustain the momentum.
You are becoming very strange.Why one should be scare to lose on option...it's only on paper.. not final result until you quite totally ..point is option trading cost lot less fund then out right purchase..so it's for anyone to play. you don't have to be Warren Buffet.
since you did answer, my answer to your statement "You must be scare to loose money?" is simply I am not stupid with my money, I like to control it and losses. Saying your playing hundreds of contracts make you look big here but in reality we both know (if your as smart as your trying to project here) that it is absolutely stupid to do that kind of option trade on any stock. I am sure your a big trader, have big money like most here who post, so you don't have to reinterate that point again. As I said in my prior post, I don't believe you, never will. Anyone that can make the statement I quoted in my last post does know enough to do what you say your doing, plus many more strange posts you've made on option trading. Once again good luck, you can fool some of the posters here, but not me.
As your wish..You don't have to believe..200 Call contract is only $34000.. That is small invest bet to make . I am authorized to trade 500 naked contract at time per each account..What is so big deal about size of call contract. You must be scare to loose money?
yes Yonsu I do. But I usually only try my hand on covered calls and I am not too adapt at that! So....I will just muddle along. Options I am sure can be very profitable..only for the very knowledgable. Most of my money is with a money manager and I play with the rest. Right now I am heavy into ABP which is due for earnings tomorrow...before the bell. That sounds very bullish! (it is a natural gas play that Peter Lynch is heavy into. Wish me luck! Annie
Ann, you do realize as long as the dividend is paid before an exercise you still get the dividend money on any stock you write a call on. Pick a month beyond the dividend payment and you should be fine.
aren't you the guy that posted this "Once you sell CALL you are stuck until expiration of contract"-- I am afraid I can't believe the same person bought 200 calls and can say as you did previously, "reading your past posts I assume you are well experienced trader". Well, I trade options almost exclusively ( do buy and sell stocks when I believe it is lucrative), and I can say simply, I don't believe a word you post especiallyabout your option experiences (I could say expertise but don't believe you have any). Lots of big talk, great for the boards......but don't try and snow me. No need to respond, I have had all I need or want of your talk. Good luck.
I gotta love this chart
Shows me we are going a lot higher Fridays strength was a good sign too.
IMHO we will see $40 soon
Yonsu; I bought Dec 40 since it was only 30 cents more then NOV. everyone was playing for ER. Since it was not sure thing to all people there were enough CALL sellers so fees were very reasonable,. $1.65 to 1.70. I sold all before THUR closing so I did not get max. Today, I believe close to $5 or over. I always buy 100 or more in order to make my time worth while. Since Option I play are always near or out of money bets. Usually under $2 to low as $0.75
Yonsu; reading your past posts I assume you are well experienced trader. So I will skip all option explanation. Good example was this week's QCOM situation. On Monday & Tuesday I bought hugh amount of QCOM shares I felt very strong my analysis was correct but there was no guarantee ,I depleated almost all my margin buying power so I took $ 17000 ea from two account and bet on DEC 40 CALL with that $ amount I controlled 20,000 shares which normally cost me about $800,000 instead of $34,000 to control same number of shares. If that ER and any wrong EU suit comments in Conf. Call. Stock could of have dived into deep bottom and $800K was wide open for picking instead of $34K limited on option side. In this case ,Since I played only for 2days so I walked away with doubling my option fee. Other half of common shares I bought on Monday since ER turned out correctly I am keeping.
Based on last year tax return recod, I gained $200k plus on option side. without exposing more working capital. My recod shows I had better return with PUTS then Calls