Put Buyers Pounce as QUALCOMM, Inc. (QCOM) Gets Smacked

QUALCOMM, Inc. (QCOM) is following its fellow tech peers into the red today

Mar 26, 2015 at 10:43 AM
facebook X logo linkedin

QUALCOMM, Inc. (NASDAQ:QCOM) is feeling the heat in today's trading, as tech names continue to sell-off. At last check, the shares were down 1.3% at $66.34 -- despite BMO upping its price target to $86 from $85 -- widening their week-to-date deficit to 5.3%. Options traders are responding in kind, scooping up puts at a rate two times the average intraday pace, with a number of speculators calling for more downside through tomorrow's close.

Specifically, QCOM's weekly 3/27 66-strike put has seen the most action, and it seems safe to assume new positions are being purchased here -- a theory echoed by data from the International Securities Exchange (ISE). By buying the puts to open, traders expect the stock breach $66 by tomorrow's close, when the weekly series expires. Earlier, the security bottomed out at an intraday low of $65.68.

Outside of the options pits, sentiment is more optimistic. For starters, although short interest jumped 20.3% in the last two reporting periods, it accounts for just 1.2% of the equity's available float. This leaves little in the way of sideline cash available to help fuel any future rally attempts.

Elsewhere, more than two-thirds of covering analysts maintain a "buy" or better rating toward QUALCOMM, Inc. (NASDAQ:QCOM), with not a single "sell" to be found. Plus, the consensus 12-month price target of $76.88 stands at a 16% premium to current trading levels. Should the shares extend their downward trajectory, a continued rise in short selling and/or an unwinding of optimism among the brokerage bunch could translate into a fresh wave of selling pressure.


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