QCOM – Qualcomm, Inc. – The provider of digital wireless telecommunications products and services enticed bullish options investors in afternoon trading. Qualcomm’s shares increased 0.85% to $35.02 by 3:55 pm (ET), but rallied as much as 1.3% to an intraday high of $35.17 at the start of the trading session. Investors piled into out-of-the-money call options in the last 30 minutes of the trading session, buying approximately 38,000 lots at the June $36 strike for an average premium of $0.28 apiece. Call buyers at this strike price are prepared to make money should Qualcomm’s shares rise another 3.7% to exceed the average breakeven price of $36.28 ahead of June expiration. Bulls also purchased some 8,400 now in-the-money calls at the July $35 strike for an average premium of $1.18 apiece. These traders are poised to profit as long as shares trade above the average breakeven point on the calls at $36.18 by expiration day in July.
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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