Qualcomm (QCOM) Last-Minute Bulls Take Center Stage

QUALCOMM, Inc. (QCOM) call buyers are active once again

by Josh Selway

Published on May 29, 2015 at 1:49 PM
Updated on May 29, 2015 at 1:49 PM

QUALCOMM, Inc. (NASDAQ:QCOM) is flat today at $70.60, but that hasn't stopped option bulls. More than 38,000 calls have crossed so far -- twice the expected intraday amount -- versus only 5,000 puts. The most popular contracts are the weekly 5/29 70.50- and 71-strike calls, which appear to be seeing buy-to-open action. This means traders are betting on extended gains above the respective strikes, ahead of the contracts' expiration at today's close.

This is just more of the same for QCOM traders, as call buying has been hot lately. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 6.25 is only 1 percentage point from an annual high.

The majority of brokerage firms have also taken a bullish stance. That is, 15 of 24 analysts tracking QCOM say it's a "buy" or better, versus nine "holds" and not a single "sell."

QUALCOMM, Inc. (NASDAQ:QCOM) hasn't really lived up to the hype, though. The shares have given back over 12% in the past year, and more recently have been pressured lower by their descending 40-week moving average. The company is also facing increased competition, due to yesterday's big buyout.


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