QCOM is headed toward its biggest monthly loss since early 2002
Qualcomm, Inc. (NASDAQ:QCOM) topped out above $90 earlier this month after the chipmaker settled with Apple (AAPL) in a patent dispute -- marking QCOM stock's highest mark since January 2000. The shares quickly retreated on news of an antitrust court ruling, last seen down 1.6% at $65.56 -- putting them on track for their worst monthly performance since February 2002.
This may be what prompted Evercore ISI this morning to slash its QCOM price target to $90 from $105, though this still represents a 35% premium to last night's close. Most analysts are bullish on Qualcomm, with 12 of 19 maintaining a "buy" or better rating. Plus, the average 12-month price target is in line with Evercore's new target price.
In the options pits, put traders have been active in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), QCOM's 10-day put/call volume ratio of 0.68 ranks in the 92nd annual percentile, meaning puts have been bought to open relative to calls at a quicker-than-usual clip.
However, put writers have been present, too. More specifically, the June 62.50 put has seen the biggest increase in open interest over this two-week time frame, and data from the major exchanges confirms notable sell-to-open activity here. By using this neutral-to-bullish
options strategy, speculators expect QCOM to remain above the $62.50 level through June options expiration.