Options Brief: Qualcomm (QCOM)

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.

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

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.

Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.

Visit: Interactive Brokers

Be the first to comment

Leave a Reply

Your email address will not be published.