Qualcomm (QCOM) Bulls Bet On More Upside

QUALCOMM, Inc. (QCOM) continues its rebound

Feb 19, 2015 at 1:03 PM
facebook twitter linkedin


February has been a good month for QUALCOMM, Inc. (NASDAQ:QCOM), as the company settled with Chinese antitrust investigators, and the stock has filled its late January bear gap. What's more, since hitting an annual low of $62.26 on Feb. 2, the stock has rallied 14.3% to perch at $71.14. Accordingly, call buying activity in the stock's options pits has been ramping up.

Drilling down, calls are outpacing puts by a nearly 6-to-1 margin today, and are running at twice the average intraday rate. Garnering notable attention are QCOM's weekly 2/27 71.50- and 72-strike calls, where buy-to-open activity has been detected. By purchasing these calls, traders expect the security to finish north of the respective strikes by next week's end, when the weekly contracts expire.

Delta on the weekly 71.50-strike call stands at 0.42, implying a 42% chance of expiring in the money. Meanwhile, delta on the 72-strike call sits at 0.33, suggesting a one-in-three shot of an in-the-money finish.

From a broader perspective, put buying has picked up during the past two weeks. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 0.98 stands just 8 percentage points from an annual high.

Daily Chart of QCOM Since November 2014
 

*SPONSORED CONTENT*

How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.

*SPONSORED CONTENT*