Why Put Traders Are Piling on Qualcomm Stock

Put volume is running at nine times what is typically seen at this point

Deputy Editor
Aug 3, 2023 at 11:07 AM
facebook X logo linkedin


Semiconductor concern Qualcomm, Inc. (NASDAQ:QCOM) is plunging today, last seen down 10.6% to trade at $115.59. Today's drop follows a lackluster fiscal third-quarter report, with the company missing revenue expectations and issuing a softer-than-expected fourth-quarter outlook amid weak smartphone sales. Earnings, however, came in slightly above estimates.

Put traders are taking notice of the results. Already today, 76,000 bearish bets have already crossed the tape, which is nine times the intraday average volume. New positions are being bought to open at the top five most popular contracts, led by the weekly 8/4 115-strike put. 

The brokerage bunch is also weighing in. Deutsche Bank downgraded the equity to "hold" from "buy" and cut its target price to $120 from $130, while Susquehanna and J.P. Morgan Securities slashed their price objectives as well. Piper Sandler, CFRA, and Morgan Stanley all adjusted their price targets higher, however.

Coming into today, 15 of the 21 covering brokerages rated Qualcomm stock a "buy" or better. Meanwhile, the 12-month consensus target price of $137.79 is an 18.9% premium to current levels.

Today's bear gap puts QCOM back below a recent safety net at its 50-day moving average. Down 22.4% over the last 12 months, Qualcomm stock still sports a 5.3% year-to-date lead.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI