Options Brief: Qualcomm (QCOM)

QCOM – Qualcomm, Inc. – The manufacturer of digital wireless telecommunications products realized a 1.25% decline in the value of its shares this afternoon to trade at $35.14 just after 2:50 pm (ET). Despite the pullback in the price of the underlying stock, one optimistic options investor appears to have enacted a bullish risk reversal in the October contract. It looks like the options strategist sold 14,000 puts at the October $30 strike for a premium of $1.01 apiece, and purchased the same number of calls at the higher October $40 strike for a premium of $0.66 each. The transaction yields a net credit of $0.35 per contract, for a total of $490,000.00, which the responsible party keeps in full as long as Qualcomm’s shares exceed $30.00 through October expiration. Additional profits are available in the event that QCOM shares surge more than 13.8% to trade above $40.00 ahead of expiration day.