Someone with a lot of money to spend has taken a bearish stance Qualcomm (NASDAQ:QCOM).
And retailers should know.
We noticed this today as the big position popped up in the publicly available options history we track here at Benzinga.
Whether this is an institution or just a wealthy person, we do not know. But when something this big happens with QCOM, it often means someone knows something is going to happen.
Today Benzinga’s option scanner spotted 21 option trades for Qualcomm.
This is not normal.
The general sentiment of these big money traders is split between 38.1% bullish and 61.9% bearish.
Of all the options we discovered, there was 1 put, totaling $46,200.00, and 20, calls, totaling $1,009,085.00.
What is the price target?
Taking into account the volume and open interest on these contracts, it appears that whales have been targeting a $150.0 to $220.0 price range for Qualcomm for the past 3 months.
Volume & Open Interest Development
Looking at volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Qualcomm’s options at a particular strike price.
Below, we can observe the evolution of volume and outstanding interest in calls and puts, respectively, for all of Qualcomm’s whale business within a strike price range of $150.0 to $220.0 over the past 30 days.
Qualcomm option volume and interest outstanding over the past 30 days
Biggest options spotted:
Total Trading Price
QCOM CALL SWEEP BULLISH 01/01/22 $200.00 $107.9K 15.3K 415 QCOM CALL SWEEP BULLISH 01/20/23 $180.00 $103.9K 6.1K 103 QCOM CALL SWEEP BULLISH 01/20/23 $180.00 $79.3K 6.1K 111 QCOM CALL SWEEP BEARISH 02 /18/22 $220.00 $70.7K 1.0K 686 QCOM CALL SWEEP BEARISH 18/02/22 $220.00 $69.0K 1.0K 948
Where is Qualcomm now?
With a volume of 10,559,803.00, the price of QCOM is up 1.15% to $185.99. RSI indicators indicate that the underlying stock is approaching overbought. The next profit is expected to be released in 51 days.
What the experts are saying about Qualcomm:
Mizuho has decided to maintain their buy rating on Qualcomm, which currently stands at a price target of $195.0. Piper Sandler has decided to maintain their Overweight rating on Qualcomm, which currently stands at a price target of $225.0. Citigroup has decided to maintain their neutral rating on Qualcomm, which currently stands at a price target of $180.0. Keybanc has decided to maintain Qualcomm’s Overweight rating, which currently has a price target of $210.0. Deutsche Bank has decided to maintain its buy rating on Qualcomm, which currently stands at a price target of $210.0.
Options are a riskier asset compared to just trading the stock, but they have a higher earning potential. Serious options traders manage this risk by informing themselves on a daily basis, scaling in and out of trades, tracking more than one indicator and closely monitoring the markets.
If you are already an options trader or want to get started, head over to Benzinga Pro. Benzinga Pro gives you up-to-date news and analysis to power your investment and trading strategy.