EARN25

Qualcomm Stock's January Doldrums Could Be Starting

QCOM doesn't have the best January performance track record

Digital Content Manager
Jan 3, 2024 at 10:01 AM
facebook X logo linkedin


Chip stocks were all the rage in 2023 amid artificial intelligence (AI) advancements. While the sector still looks promising, there's one name in particular investors may want to avoid in early 2024. More specifically, Qualcomm Inc (NASDAQ:QCOM) has historically underperformed in January, and seems to be sticking to this trend so far today, last seen down 1.6% at $137.99.

Per data from Schaeffer's Senior Quantitative Analyst Rocky White, QCOM averaged a January loss of 3.3% over the past 10 years, and finished the month in the red seven of those times. A comparable move from the security's current perch would place it below $135.

Worst January 2024

Shares are today testing support from the 20-day moving average, which has been in place since early November, as they continue to pull back from their Dec. 28, 52-week high of $146.89. Qualcomm stock still sports an impressive 30.8% year-over-year lead.

 

QCOM 20 Day

 

An unwinding of optimism in the options pits could hurt QCOM. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), QCOM's 50-day call/put volume ratio of 2.01 ranks higher than 89% of readings from the past year.
 
Premiums are affordably priced, per the equity's Schaeffer's Volatility Index (SVI) of 24% that sits higher than just 10% of annual readings, meaning short-term options are pricing in lower-than-usual volatility expectations.
 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!