A Six-Figure Bet on a Continued Qualcomm (QCOM) Slide

QUALCOMM, Inc. (NASDAQ:QCOM) puts are accelerated today

by Josh Selway

Published on Apr 29, 2015 at 2:34 PM
Updated on Jun 24, 2020 at 10:16 AM

QUALCOMM, Inc. (NASDAQ:QCOM) was last seen 2.2% lower at $68.12, and options traders think more losses are coming. Puts are changing hands at an accelerated clip, thanks in part to one ambitious trader. Specifically, it appears as if someone bought to open 5,250 weekly 5/22 64.50-strike puts for an initial cash outlay of $120,750 ($0.23 premium * 100 shares per contract * number of contracts purchased. This trader is betting on the shares to fall another 5.3% and breach $64.50 by the close on Friday. May 22, when the series expires. QCOM hasn't dipped below this mark since early February. 

Put buying has been picking up on QCOM recently. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity has amassed a 10-day put/call volume ratio of 0.77 -- a reading that is higher than three-fourths of all others from the past year. This means put buying has been more popular than normal -- relative to call buying -- during the past two weeks.

This may have something to do with QUALCOMM, Inc.'s (NASDAQ:QCOM) performance of late. When the shares hit $62,26 in early February, it marked an annual low. Overall, the shares have retreated 17% since hitting an annual high of $81.97 in late July, and are in danger of seeing some more bearish brokerage attention from analysts. Specifically, 15 of 24 brokerage firms deem QCOM a "buy" or better, with not a single "sell" to be found.

150429qcom


A Schaeffer's 39th Anniversary Exclusive!

8 Top Stock Picks for 2020

Access your FREE insider report before it's too late!


  
 
 

Partnercenter