Silicon Investor - The New QUALCOMM - Coming Into Buy Range

[DWB] Nice little artificial milestone today, I officially became a Quillionaire (at l...

DWB — 5/11/2026 5:22:32 PM

Nice little artificial milestone today, I officially became a Quillionaire (at least on paper, not accounting for taxes). Been a long time coming. Would have been sooner, but I've sold a few shares over the years here and there.

DWB

[pheilman_] A new intra-day ATH! A new closing ATH! And Jim Cramer is on the other side! y...

pheilman_ — 5/11/2026 4:08:41 PM

A new intra-day ATH! A new closing ATH! And Jim Cramer is on the other side!

youtube.com

[pheilman_] ATH intra day, hamsters are amped up on coffee, c'mon hurry sundown!

pheilman_ — 5/11/2026 12:01:14 PM

[pheilman_] New ATH closing, up >$10.0, the hamsters will not be denied! Traditions must be...

pheilman_ — 5/8/2026 4:45:06 PM

New ATH closing, up >$10.0, the hamsters will not be denied!

Traditions must be upheld!
youtube.com

[Cooters] I have my ticket for one more ride!

Cooters — 5/8/2026 10:25:50 AM

[pheilman_] Hamsters are getting warmed up!

pheilman_ — 5/8/2026 10:07:33 AM

[DWB] I was just thinking someone would be posting this soon the other day... Good me...

DWB — 5/5/2026 8:57:49 PM

I was just thinking someone would be posting this soon the other day...

Good memories!

DWB

[kelseysuncle] Thanks!!! Tradition counts! Best, ku

kelseysuncle — 5/5/2026 8:31:19 PM

[pheilman_] Tradition, tradition! youtube.com

pheilman_ — 5/5/2026 7:18:16 PM

[John Hayman] Hamster dance. It's been too long since I saw that, thanks. John

John Hayman — 4/24/2026 3:25:01 PM

[pheilman_] Traditions must be upheld! youtube.com

pheilman_ — 4/24/2026 11:45:20 AM

[waitwatchwander] Today's deal between OpenAI and Disney for Disney characters to be available in ...

waitwatchwander — 12/11/2025 4:44:59 PM

Today's deal between OpenAI and Disney for Disney characters to be available in Sora is somewhat down the same lines as the terms Qualcomm placed upon the use of Arduino open source development product.

share.google

Is this the new world order with IP?

[waitwatchwander] Deleted ... Wrong recipient.

waitwatchwander — 12/11/2025 4:43:46 PM

[waitwatchwander] Given it's cash generation, Qualcomm is likely headed into the hands of a pendin...

waitwatchwander — 12/4/2025 7:09:47 AM

Given it's cash generation, Qualcomm is likely headed into the hands of a pending Trillionaire.

All that's unclear is when and which one. As time flies the pot of candidates snowballs.

Zeal melts snowballs.

Billionaires are inheriting record levels of wealth, UBS report finds -

reuters.com

[waitwatchwander] . On a technical front I see Qualcomm's stock trading today somewhat similar to...

waitwatchwander — 10/30/2025 1:30:28 PM

.

On a technical front I see Qualcomm's stock trading today somewhat similar to how it was trading back in late 2019. That's right before the breakout from the $40 - $85 trading range we endured for a decade. We shall (soon?) see. If market corrects, we should be up for being one of the earliest to recover.
.

[Lance Bredvold] I had a 180 for April @22 sitting on order and it popped this morning. Wish I'd...

Lance Bredvold — 10/27/2025 4:05:45 PM

I had a 180 for April @22 sitting on order and it popped this morning. Wish I'd had a 200 (also for $22) like I do now.

[Elroy] 2-ways-to-trade-qualcomm-ahead-of-novembers-earnings/ Well, lets see. 1. Buy ...

Elroy — 10/23/2025 12:48:34 PM

2-ways-to-trade-qualcomm-ahead-of-novembers-earnings/

Well, lets see.

1. Buy

2. Sell

That was easy.

[waitwatchwander] 2-ways-to-trade-qualcomm-ahead-of-novembers-earnings/ theglobeandmail.com Anot...

waitwatchwander — 10/23/2025 11:44:44 AM

2-ways-to-trade-qualcomm-ahead-of-novembers-earnings/

theglobeandmail.com

Another AI generated story. Going into earnings this time around it does looks like a breakout of the $150 - $170 range is going to happen, sooner rather than later.

Time for me to get back into studying covered calls.

[Art Bechhoefer] More than a few people, including QCOM shareholders are becoming fed up with som...

Art Bechhoefer — 9/25/2025 1:11:36 PM

More than a few people, including QCOM shareholders are becoming fed up with someone spewing hate and firing people right and left. Christiano seems to be doing a good job threading his way through a maize filled with impediments, political and economic.

One bright spot I see is that QCOM is undervalued, owing mainly to most of its 170,000 + patents, valued on the balance sheet at zero. That means the shares have less downside risk in a market beset by tariff related inflation and reduced consumer discretionary spending. Intrinsic value trumps book value.

We are going through a period where traditional strengths are being discarded. Freedom is now defined by many as simply the right to do whatever you want. It's not, and never was. Freedom is a gift that requires adhering to certain rules, not doing whatever you want. The Old and New Testaments, even the Quran, all agree on this message. The Old Testament states, "Vengeance is mine, says the Lord," in the books of Leviticus and Deuteronomy, and warns people to respect their neighbors, including aliens, in memory of the 400 years the Israelites spent in Egypt. The New Testament book of Ephesians is even clearer in cautioning believers not to ". . . let the sun set on your wrath." The Quran accepts Jesus as a prophet, along with Muhammed, who came along much later.

Changes in ideology can spread quickly, as shown historically by their influence from one country or even one continent to another, often in mere months if not years. The evidence is seen in the similarities in paintings, sculptures, and technology, for example, from Persia, China, and Japan, which showed up in European nations only a few years after they appeared in their country of origin. Think about paper (papyrus) and its "modern" development in China and Japan, or Ming blue and white porcelain imitations from Delft and Meissen, or the eroticism of Persian miniature paintings in European paintings less than a decade later.

The present U.S. leadership is heading toward a slow or no growth economy, signs of which are already unmistakable. The effects are magnified because of efforts to destroy not just freedom of speech but freedom of thinking differently; hence, an attempt to quell innovation. Where this mindset occurred elsewhere in the recent past, the results were not just inflation but destruction of the middle class, and fatal mistakes in public policy leading to increasing costs and war, borne by everyone including those who created the mess.

I like to think about Claude Shannon, one of the fathers of modern information technology, who introduced the modern world to the basic math and the need for diversity of inputs to minimize computing error. He, along with John von Neumann, one of whose last lectures at Princeton detailed the design of reliable computers from unreliable components, was given at a time when computers still used vacuum tubes, which got hot and often burned out. He showed mathematically how redundant, independent circuits with components operating independently of one another could not only improve reliability but the reliability would improve with continuing iterations.

The modern day lesson is that, without diversity and independent thinking, you can end up making big mistakes that ultimately may prove your undoing. Think about that.

Art

[Lance Bredvold] I need to talk. Here is my place. My country is in trouble. QCOM has not been...

Lance Bredvold — 9/25/2025 9:54:44 AM

I need to talk. Here is my place. My country is in trouble. QCOM has not been a major contributor to the damage partly due to the wisdom of Irwin Jacobs early on. Our CEO grew up in a country which just narrowly escaped the damage being inflicted upon my country. I was not pleased to see that our leadership joined the group which visited the middle east in tow of Trump. Nor that we needed to tell anyone that our CEO was invited to the sit down in England.
I would prefer that Christiano stood up tall against fascism and dictatorship even though it would likely be damaging to my overweight investment in QCOM. What an embarrassment was Tim's gold gift to Trump. All that money and size sucking up! I think we should all be listening to Robert Reich and Adam Kinzinger and Joan Baez (since she was interviewed this morning) and Heather Cox Richardson. We have the internet available to us with all the information we can use, so watching TV is for losers. They are too big and too powerful--the networks that is-- and serving up pablum.
There is plenty of junk on the web, too, but also information which can be obtained cheaply and quickly. We are all going to have to hang together or ...............

Do I feel better? Not much. But at least I told a couple of you that we are going to have to sacrifice if we are to escape project 2025's claws.

I would love to hear that our CEO was part of a group including competitors who agreed to stand up for the US Constitution together rather than allowing themselves to be isolated and picked off one by one each hoping to stay in the good graces of an immoral and weak government. To me, that's why we are paying him the big bucks--to be a leader even when the times get tough.

I know that opinion is not going to be popular with many on the moderated thread, but feel I need to at least express my willingness to stick my neck out.

[Lance Bredvold] So our president as essentially said today: "Just kidding folks; stand down". I...

Lance Bredvold — 4/9/2025 4:28:44 PM

So our president as essentially said today: "Just kidding folks; stand down". I wonder how many other countries are apt to "say"==Well, we weren't and don't appreciate your endangering the world monetary system.

On a second topic, I commented on the moderated thread that perhaps management did not desire to manage the markets and received a bit of blowback. Now that I review the reaction, I can report to anyone interested that I've known 2 CEO's of smaller companies closely enough to be confident that they made every effort simply to call balls and strikes in forecasting their company's next few quarters. Ron Moquist at Raven Industries (now a part of Case New Holland (CNH), actually made a point to correct me when I suggested his positive attitude could be interpreted as a prediction the stock price would be rising. He said, no, all he tries to do is offer his best insight into what is currently happening in markets they occupy and Raven's efforts to adapt.

I still suggest that moral management has responsibilities to several constituents beyond just the stockholders--eg. customers, employees, government, etc and that balancing act is what makes a good CEO and makes his job difficult beyond just financial considerations.

Trying to manage the PE is a fools game. While pushing up the PE for current shareholders he is pricing current buyers out of the market for future gains. Like Sisyphus, he gets himself into the position where he must be continually pushing the stock price higher for the next group that demands their expectations be met. Until. like GE in 2000, there was simply no way the potential matched expectations. And 25 years later we finally can have a small return.

Don't you realize that most boards are aware of that foolishness and opt to encourage a reasonable reflection of the company;s prospects?

[Lance Bredvold] Especially appreciated are the "Qualcomm (R) Aqstic (TM) Audio Adapter". I am b...

Lance Bredvold — 2/25/2025 10:51:20 AM

Especially appreciated are the "Qualcomm (R) Aqstic (TM) Audio Adapter". I am badly hearing impaired and in a motel for 3 weeks. I can turn these laptop speakers up to the level of uncomfortable easily while that new HP desktop at home I've barely been able to get to adequate. Use BOSE headsets there if I could get the Bluetooth to work while that Snapdragon easily connected but I don't need them.

[Lance Bredvold] OH, neat. I went down to the front desk with the music still playing. By the t...

Lance Bredvold — 2/19/2025 11:46:18 AM

OH, neat. I went down to the front desk with the music still playing. By the time I got back the screen and music were shut off, but even before I planted my face before the camera the music restarted. After I sit down in front of the screen my tab for SI opens immediately but I have music until I sit down in front again apparently.
And the first night I'd left the music on while in bed and it played for about two hours without the charger plugged in. In the morning when I checked the battery was down to 85% which is the lowest I've seen it so far.
Just all kinds of pleasant surprises. Hey, guess I'll hit the CoPilot key and see if it does anything different than picking the symbol in the upper right which I've been used to using even on my old desktop.
The only difference seems to be that I get a full screen devoted to AI plus it asks if I want to sign in. But I asked what the price of QCOM stock was and it told me correctly.
But now Yahoo is modifying their format again. It does seem improved but they are clearly preparing to force me into buying their improved model. After 30 years on their free offering, I'm content with what I get there and may need to shift to someone else if I can no longer get my 150 week moving average which I use as a heuristic for when I buy a stock and when I'm getting ready to sell.

[Lance Bredvold] Both my desk top and laptop were getting old and full of junk I didn't know how ...

Lance Bredvold — 2/19/2025 11:05:47 AM

Both my desk top and laptop were getting old and full of junk I didn't know how to clean up inexpensively. Plus MS said they would no longer support Windows 10 and Google stopped support for that system as well. First I bought an HP desk top with AMD's Ryzen for about $1399 all in one. It is 27inches and most everything I want is there and quickly available compared with the old one. But a couple problems with the keyboard and the bluetooth connection to my brand new Bose earphones which just won't connect easily.

Then 10 days ago I ordered and ASUS Snapdragon XPlus I think with a 15 or 16 inch screen. That's what I'm on in a motel right now and I almost think I prefer using it to the big HP. Everything works and works well. Screen lights up easily whenever I look at it and shuts down promptly if I walk away. Typing is much better and easier since I don't have to continually check to be sure the g and h keys actually activated (that's the main problem on HP's bluetooth keyboard). Right now I have 21 tabs open and music from Sangah Noona (not on the Bose but out in the open--I could use the Bose but don't think they'd help much more) playing well in the background--the speakers have a QCOM label on them by the way, and even with poor hearing I can hear nearly everything she plays. It's just been a total pleasure for the last 4 days for only $670 from Walmart.

I'm not sophisticated about computers and it's a little more costly than the chrome book I got by on for 7 or 8 years, but this sure is a pleasure to use. I see Intel is being sold much more cheaply and even AMD's computers are cheaper--maybe they're just as good as this one--but I'm totally satisfied as of now and suspect we'll do fine in competition with those other providers.

I still have $175 calls on offer as well as a lot for $177, both near trading today. My faith in QCOM eps growth has continued to provide 16% or more CAGR on most shares which I find quite satisfactory. I wish I had just a bit more confidence in Amon however. After so many years at the company and being picked for CEO the board should have known his strengths and weaknesses well enough. I trusted Mollenkopf's judgement more.

[Lance Bredvold] Again I review my returns owning QCOM and find they are all above 14% (wait, no...

Lance Bredvold — 1/31/2025 12:59:37 PM

Again I review my returns owning QCOM and find they are all above 14% (wait, not all the accounts were checked) including dividends. Somehow I just don't see why there are so many discussions about getting a higher PE when I feel so comfortable where we are. That's relative to AAPL, NVLS, and so forth. I have a call on offer for $175 at $22 at the moment and all earlier calls are now exercised or repurchased. I also have placed an order to sell a lot at $177 in a taxable account in which the highest priced shares would return 17% and the older slightly lower priced shares would return 15% though I'm not offering them yet. Many others would return over 24% CAGR. I would prefer Irwin Jacobs running the company, but my returns continue to be the best I can obtain anywhere.

WWW offered a talk by Richard D. Wolff which I value highly and which no one but me recommended. I don't regard myself as a Marxist, but the basic facts he lays out I agree with. The solution, well yes, but not so much. Still my heavy involvement with QCOM stock is dangerous though I know of no place better. Maybe a safer, better house or BYD car. Maybe some drug stocks or pipelines. Maybe some Chinese exposure. So I continue to try to reduce exposure (15%) to QCOM at the best available price.

[Art Bechhoefer] Lance -- Selling out-of-the-money covered calls with expiration at least six mon...

Art Bechhoefer — 12/5/2024 11:55:21 AM

Lance -- Selling out-of-the-money covered calls with expiration at least six months ahead may be the best strategy at a time iike this.

Art

[Lance Bredvold] My brightest hope now is that a settlement with Son will give the price a few da...

Lance Bredvold — 12/5/2024 11:48:51 AM

My brightest hope now is that a settlement with Son will give the price a few days uplift allowing another sale of calls--hopefully many. I do regret second guessing myself and buying back at a loss a couple of the calls I sold for $165 and $155 strikes so I wish to remind myself that my first thorough analysis is usually right and if not, there is usually an opportunity to buy back just before expiration. Of course, at times I get called or put to by early redemption, but those times are rare enough that I can tolerate the risk. My Q 210's and 190's are expiring soon clearly profitable and the $155 and $165 which were exercised now appear to be successes.

As WWW said, the main reason I do calls with such an oversized position is to force myself to sell when the price is frothy and I wish I had more shares even though improbably high.

If one wishes to compare PE's NXPI is a much better comparison than Apple or chip makers.

[waitwatchwander] We certainly do need more E. I'm not as sure about your adjusted earnings comme...

waitwatchwander — 12/5/2024 10:31:45 AM

We certainly do need more E. I'm not as sure about your adjusted earnings comments though.

What's missing on the later is fair evaluation of employee non-cash compensation. With more attention paid to weeding out the chaff this area has improved. However, there are limits to these activities.

The biggest problem I see with PE is it appears to be more reflective of overall market considerations than progress within any particular area of business. Stock prices move on news of this later nature.

PE is a mushed together measure which comes into play after news is well disbursed. Analyst measures do have their place but tend to follow along after business has been rejigged.

Are we there yet?

[Lance Bredvold] Having just read the story of China's retaliatory statements against US chips, I...

Lance Bredvold — 12/5/2024 9:54:51 AM

Having just read the story of China's retaliatory statements against US chips, I finally feel the need to justify my opinion that QCOM's PE is too high. The lawsuit with Son seems to me of minor importance in terms of danger. Also of some concern is the suggestion of disrespect for Amon by apparent employees which I note on this board. Far different from the feeling about the company as headed by Jacobs, a humble scientist/engineer. I based my optimism for an increase from PE 11 or so mostly on the possibility of increased promotional efforts by a new CEO after years of the company saying little and carrying a big stick. I now begin to think the effect of increased PR has been spent with less than optimum results.

And another concern is the overall accounting BS in the market with the use of anticipated and "adjusted" earnings. Q used adjusted for many years and restrained themselves a bit as they were at least pretty consistent in their employment, but that kind of thing means "frothy" to me. Walter Frasee made is abundantly clear to his students that the accounting standards boards made every attempt to design GAAP as a positive and accurate representation of earnings across a wide range of companies and situations. They are the what I trust, but the market seems to increase price for the fantasy of "adjusted". Enigma.

I could certainly be mistaken. I hope so, but think I'd be wise to continue my efforts to reduce exposure at PE 16 or so.

[John Hayman] [graphic]

John Hayman — 10/6/2024 6:21:31 PM

[lml] Agree, Art. Could drop to mid-150s, but I think intermediate trading range is i...

lml — 8/2/2024 8:22:07 PM

Agree, Art. Could drop to mid-150s, but I think intermediate trading range is in the 155 - 165 range. Time will tell. I've been wrong in the past, but also have been right. :-)

[Art Bechhoefer] I'm not expert in determining a buy range, but it seems that the current price b...

Art Bechhoefer — 8/2/2024 3:48:40 PM

I'm not expert in determining a buy range, but it seems that the current price below $160, which gives a forward looking PE of less than 15, is a pretty decent buying price.

Art

[Jon Koplik] natural home now in the $140s ? I sure hope not . . .

Jon Koplik — 8/2/2024 3:44:00 PM

[waitwatchwander] Is the $140's range now considered buy range for Qualcomm? It sure seems so.

waitwatchwander — 8/2/2024 2:58:57 PM

[Art Bechhoefer] Revocation of the Huawei license is compensated in part by additional business f...

Art Bechhoefer — 8/2/2024 2:50:48 PM

Revocation of the Huawei license is compensated in part by additional business from Honour, which was a spinoff from Huawei that began when the U.S. banned sales of U.S. chips, components, and software for Huawei. The revocation of the Huawei license doesn't really bother me.

Art

[Lance Bredvold] The results after earnings are not what I expected. And my choice to buy back h...

Lance Bredvold — 8/1/2024 10:54:33 AM

The results after earnings are not what I expected. And my choice to buy back half of my $155 and $165 calls with the plan to sell further out did not work out well so far. I never sold them again and could not get a good price for such calls today.

Yet the whole process I am very pleased by. Also heartened by Q3 results and the market reaction. As I've said many times, I'm most comfortable when the PE is lower and reading here that our CFO says we are on track for 50% revenue gains sounds great. I am away from my home for a week and cannot confirm that liklihood but presume it accurate. I have similar calls sold $165, 175, 190, and $210 each giving me over $2000. The $155 was called for a net of $169 and even that is fine by me as I am still overexposed in QCOM.

Revocation of sales to Huawei was a fear of mine and now that it is extant, and the price has adjusted, I'm happier. Wish I'd also been more alert to sell $230 calls on the one or two days I could have gotten $25 or more, but the $210's will have to do.

[waitwatchwander] You get to keep the dividends too.

waitwatchwander — 6/23/2024 6:30:14 PM

[Elroy] Yup, good luck.

Elroy — 6/23/2024 6:21:25 PM

[Lance Bredvold] Elroy; You have done a nice job for me. I do see the value in rolling some of ...

Lance Bredvold — 6/23/2024 6:19:14 PM

Elroy; You have done a nice job for me. I do see the value in rolling some of these as you do. I was more in WWW's camp at first, but tried a roll on the Schwab legacy website. It was entered late on Friday and I did not know how to adjust it easily enough but I could see that I could roll for a comparable amount but gain $2 or $7 extra per share out 6 months or so. Would not make up for my entire loss but would still be profitable to me.

Next month I have both some QCOM and WMT expiring and I'm beginning to look at mechanically offering $55 for a QCOM $155 and if that pops will offer a QCOM $165 Jan 25 for just a little more. Maybe $60. If both happen in the next month I'll gain $500 on the call and also $1000 on the eventual sale. And maybe if time gets short I'll consider a roll as a package instead. I have another call expiring and I'll let those shares go in July as my object was to reduce holdings as the price led to overreliance on QCOM in my portfolio.

I'll try something similar with WMT. I was content to let both go, but now agree that rolling them is a better option if I can do it. The WMT in July is a $56.67 so a little less painful. I also have some other calls short but they will expire worthless.

Thanks for your help.

[Elroy] I can buy back at about $14.00, but that is effectively buying at the current pr...

Elroy — 6/21/2024 9:23:45 PM

I can buy back at about $14.00, but that is effectively buying at the current price which I don't want to do.

I think they expired today, so the point is perhaps moot.

I would have considered buying back the calls today (which is over) and selling forward a higher strike WMT call at zero cost to you.

TorS helps you see what future dates and strikes can can do in this sort of roll, and what you can receive or pay. Anyways, perhaps too late now.

[Lance Bredvold] Elroy; Because you went to so much trouble I did download TorS to my accounts at...

Lance Bredvold — 6/20/2024 1:10:48 PM

Elroy;
Because you went to so much trouble I did download TorS to my accounts at Schwab. I chose the paper money option as I did not want to make a mistake and actually do a trade. But yesterday I had gone to the regular trading platform and found that they offer a roll option on my positions page anyway. Probably does not have as much information all in one place though.

I've sold and bought calls for many years (and also a few Puts) so I'm well familiar with the upsides and downsides. I do regard this particular sale as foolish. But in frothy markets I have always sold calls and been happy when they come back to earth. However, I frequently get timed out and in this case, I now suspect WMT will never get back to $57 (my effective sales price).

I can buy back at about $14.00, but that is effectively buying at the current price which I don't want to do. But I will follow through on the think or swim platform exercise. Not so sure it is letting me use the actual calls which are in question.

[waitwatchwander] I find stocks which have moved higher (qcom in particular) tends to pop early in...

waitwatchwander — 6/19/2024 12:07:33 PM

I find stocks which have moved higher (qcom in particular) tends to pop early in the week when options are about to expire and then fall back closer to their max pain value on expiry. For me, it's all anecdotal.

I find I get into enough trouble playing with simple, long term support and resistance levels.

Momentum is great until it isn't but when it is Elroy's point has value.

Future intrinsic value is what's important and expectations there are impacted by second derivatives. That is, growth vs rate of growth or in simpler everyday car terms speed vs acceleration. I suspect that's what gama and alpha entail.

Selling is all about riding the wave.

[Elroy] Ok, well - even though you're getting on in years, I would suggest downloading T...

Elroy — 6/19/2024 10:11:50 AM

Ok, well - even though you're getting on in years, I would suggest downloading ThinkOrSwim, log in (it's the same login as your Schwab login), and do these steps (I'll try.....).

Up on the top area, click on "Trade". Hopefully that gets you to the trading page. My TorS defaults to this page, but maybe that's because it's where I always go.

Below the buttons Monitor and Trade, there is an empty box. Click on it, and enter WMT.

Above the buttons Monitor and Trade there is an All Accounts area. Click on it, and select your Schwab account that contains the WMT short call options.

Now, way down at the bottom of the page you should see a list of WMT options that you have in this account. Right click on the WMT call option you'd like to buy back, and select Create Rolling Order.

have a look at what pops up. It should tell you that you can roll the option forward (buy back the Friday call, and sell a longer dated WMT call) either one week or one month to the same strike, and what you will pay or receive.

In that order you can modify the longer dated option (which you would sell) to a different maturity, and different strike, and see how that changes what you would pay or receive.

---

Hmmm, eye balling it on Yahoo finance option quotes, it doesn't look like you'll be able to roll it forward and raise the strike price and receive much. Perhaps you could buy back the Friday $53.33, and sell a NEXT JAN $55, and the cost may be about zero. This is intuitively the equivalent of earning $1.67 in 7 months on $53.33, so something like a 3.2% return (but no need to pay capital gains taxes if you wind up selling the WMT due to call expiration).

Another option - maybe you prefer? You can buy back the Friday $53.33 call, and sell a Jan '26 $58.33 call, and probably make about $1.00 doing that. This would kick the tax can down the road 1.5 years, make you $1 per contract, and if eventually you're selling WMT due to being short this call, you're selling it for $58.33 rather than $53.33.

Lasty - It looks like you can buy a $53.33 this Fri WMT call, and sell the same strike $53.33 Jan '26 WMT call, and make $5.50 per contract. If you just want to push the tax can down the road, that's not a bad idea. However, it leaves you rooting for WMT to decline between now and Jan '26, cuz you're short the $53.33 calls.

----

Well, the TorS software can show the options much better than me. I would say try the steps above if you want to go through it (I don't think it's that hard). If not, then up to you - good luck. It's also not a disaster to sell WMT for $53.33 this Friday, pay the tax, and then invest the remaining money into a super winner like Google or something like that.

The problem with selling covered calls (which you're now experiencing) is you nicely get some time premium, but your upside is capped. Capped upside isn't very fun.

I'm in a similar situation having sold covered calls on 80% of my SIMO position, while SIMO (unexpecedly) continues to move higher and higher. It's a bummer!

[Lance Bredvold] I appreciate the discussion. I had think or swim at TDAmeritrade, tried it a fe...

Lance Bredvold — 6/19/2024 8:20:33 AM

I appreciate the discussion. I had think or swim at TDAmeritrade, tried it a few times and decided it was just too messy to be worth learning for a septogenarian. who was entirely familiar with the old trading platform. Now an octogenarian who was converted to Schwab just last month I really don't think I will be able to get comfortable with all the functions offered on think or swim--I don't even like the black format. I did a few trades with it and found it interesting and quite useable but since I had no intention of getting into gamma and beta and all those various complications, could see no advantage.

The new Schwab layout seems to me to be very easily understood though I'm still looking for an easy cost basis summary for all my stocks. I'm sure it's there someplace and don't need it until year end. Since I think what you suggest, Elroy, is wonderful, it's way more complex to me than just doing it myself mechanically. And as WWW has suggested, I might even try to time my sale and purchase though with just 2 more days to do it I'd probably be better off sticking to a later strike. No, maybe I'll try it today as a good project though it will involve buying those calls back at a large loss and my experience has usually been regret for trying to rethink my original idea that Walmart was not growing it's earnings fast enough to justify the price of it's stock.

The change has been two excellent earnings reports and also some promising competitive breakthroughs. And then the whole market seems pretty frothy to me but these are the lowest strike calls on WMT I've sold and are the most unprofitable.

Thank you both for your thoughts on my question.

[Elroy] Schwab wants transactions and each side of the proposed transaction is better do...

Elroy — 6/19/2024 7:54:38 AM

Schwab wants transactions and each side of the proposed transaction is better done at different stock pricing.

Sure, if the stock is ABC, it's better to buy back a call when ABC is $22 and sell a new call when ABC is $23.

But that's not what we're talking about.

We're talking about buying back an in the money call which you previously sold and for whatever reason don't want to have exercised on you, and selling a longer dated higher strike call of the same stock, at the same time.

[waitwatchwander] Schwab wants transactions and each side of the proposed transaction is better do...

waitwatchwander — 6/19/2024 5:01:08 AM

Schwab wants transactions and each side of the proposed transaction is better done at different stock pricing. That's all.

With your explanation I see the convenience of the process and just saying it's not ideal but can have value in it's surety.

One usually sells a covered call to capture a time premium. With same stock pricing one is using this premium from the new call to cover the change in intrinsic value of the base stock. Roll over as proposed just complicates this key understanding.

I'm not an options person. I find the industry has combo transactions for whatever "situation" one desires. Some good and some not so good especially when it comes to understanding.

With options, all is never as simple as buying and selling the basic item of value. Offering options and combos extends this basic service.

Nothing comes free of fees nor without added risk and all comes down to, of course, eventually.

[Elroy] When buying back your calls you want a low stock price. When selling new calls y...

Elroy — 6/18/2024 11:23:12 PM

When buying back your calls you want a low stock price. When selling new calls you want a high stock price.

Of course.

But if you buy back and sell new at the same time, you have the same stock price. It is neither high nor low.

You can of course buy back your short calls at a big loss, and wait, and hope the stock price goes up from the price it was at when you bought back your calls at a loss, and if it does then sell new calls for more than you paid a few days ago to buy back.

Sure, if everything works out you can do that, but if everything always worked out in stock trading we'd all be rich and retired.....

It seems to me Schwab is taking advantage of their clients with such offered transactions.

Schwab isn't a market maker in equity options. Are they? How would buying back short calls and selling newer longer dated calls AT THE SAME TIME be taking advantage of anyone? Who's the loser?

If I'm short a $20 Friday call on a stock that is today $22, and I can buy back the $20 Friday call, and sell the two months forward $22 call, and make a dime doing so........who's the fool?

I've switched an obligation (of mine) to sell the stock for $20 in a few days to an obligation to sell it for $22 in a few months. Whether that switch is a good or bad idea we're not going to know until the few months passes, but I don't see why anyone is taken advantage of if the short call holder decides to roll the call forward to a higher strike.

[waitwatchwander] Rolling calls over in the manner set up in ThinkOrSwim is rather silly. When bu...

waitwatchwander — 6/18/2024 10:16:53 PM

Rolling calls over in the manner set up in ThinkOrSwim is rather silly.

When buying back your calls you want a low stock price. When selling new calls you want a high stock price.

It seems to me Schwab is taking advantage of their clients with such offered transactions.

[Elroy] [graphic]the Schwab account does not seem to offer a direct roll. Since Schwab ...

Elroy — 6/18/2024 7:52:35 PM

the Schwab account does not seem to offer a direct roll.

Since Schwab bought TD Ameritrade they received a trading application called ThinkOrSwim. Have a look. You download the app to your PC, and log in with your Schwab login info.

You can then go to their Trading tab, find the option that is near expiration that you want to roll, right click on it, and one option is to Create Rolling Order. It will take your option, and then you can modify what future date and strike you want, and estimate what you will receive or pay to buy back your short call and sell a longer dated similar call.

I would practice a bit first though, with guidance from a Schwab guy. The ThinkOrSwim just takes the middle price of the two options, and calculates your expected gain or loss. If the option spreads are wide, you may not gain as much as you should if you take some time to figure out where between the spread is the actual trading price.

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I looked up your option (WMT this Fri $53.33s).

There's a way to use this software to say "In one trade, buy the WMT Fri $53.33 and sell (for example) the Sep WMT $53.33 and make $XX".

Unfortunately, I know how to do this when I have a position. I'm not sure how to do it with an option where I don't have a position. But I would install ThinkOrSwim, log in, then call up Schwab and ask them how to roll your Fri WMT $53.33's into a future strike. Then you can play with the various options of future dates and strikes and see what interests you.

[Lance Bredvold] Hi Elroy; I'm aware of the possibility of rolling forward though I've never act...

Lance Bredvold — 6/18/2024 4:19:28 PM

Hi Elroy;

I'm aware of the possibility of rolling forward though I've never actually done it. I see that E*trade now even shows me the option to roll forward on the various calls on the positions listing and I might do it for TEVA or others I own. But that's not for sure. Most calls outstanding are in IRA's and so there are not tax consequences and I suppose that will make a difference as I get closer to maturity on some of them.

But at the moment I don't expect to roll the 155's which expire in July. One I do expect to roll forward is due to a mistake I made selling a GOOGL call in a taxable account which will result in a short term gain unless I move it from November into Jan 25. I'm hoping for a bit more retreat in the GOOG price before trying to roll it, but, of course, with the american style of options one is always vulnerable to having someone exercise their call and thus I'd sell the shares even before their natural expiration on Nov 15, 24.

You seem to be more familiar with the process than I so question: Next expiration is this Friday for some Walmart (WMT) shares I sold calls on in January. Current Price about $17 for $53.33's. I could roll it over to late 2025 by buying back then then reselling to that later date at about $8. I got $4 originally. So I will reduce my loss if I do so but the Schwab account does not seem to offer a direct roll. Is there any advantage to doing it as a roll over just buying and then reselling?