The company will launch a new chip with enhanced gaming and photo abilities
The shares of QUALCOMM, Inc. (NASDAQ:QCOM) are up 2.9% at $151.49 at last check, after the semiconductor company announced a new flagship smartphone chip called Snapdragon 888, which will feature enhanced gaming and photo abilities. The 5G chip will be manufactured by Samsung Electronics' chipmaking division, and represents the top of Qualcomm's lineup for mobile phone processors. In addition, smartphones containing the chip are expected to be launched as soon as the first quarter of 2021.
On the charts, the security has more than doubled off this year's March 18 low of $58. Shares started beating records on a nearly monthly basis in late July, climbing all the way up to a Nov. 18 all-time-high of $153.33, with consistent support from the 40-day moving average since April. Year-over-year, QCOM sports an impressive 84.2% lead.
Analysts are majorly optimistic toward Qualcomm stock, with 13 of the 20 in coverage sporting a "buy" or better rating. Plus, the stock's 12-month consensus target price of $158.54 is a 4.4% premium to current levels.
Drilling down today's options activity, 215,000 calls have crossed the tape, which is seven times the average intraday amount. Most popular is the January, 2021 100-strike call, followed by the 12/4 155 strike-call, with new positions currently being opened at both.
Now also looks like an ideal time to take advantage of Qualcomm stock with options. The security's Schaeffer's Volatility Index (SVI) of 35% sits in the extremely low 14th percentile of its annual range. This mean QCOM currently sports attractively priced premiums.