Smart Money Is Betting Big In QCOM Options
Investors with a lot of money to spend have taken a bearish stance on Qualcomm (NASDAQ:QCOM).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with QCOM, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 9 uncommon options trades for Qualcomm.
This isn't normal.
The overall sentiment of these big-money traders is split between 22% bullish and 55%, bearish.
Out of all of the special options we uncovered, 4 are puts, for a total amount of $131,576, and 5 are calls, for a total amount of $301,915.
Projected Price Targets
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $177.5 to $200.0 for Qualcomm over the recent three months.
Analyzing Volume & Open Interest
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Qualcomm's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Qualcomm's significant trades, within a strike price range of $177.5 to $200.0, over the past month.
Qualcomm 30-Day Option Volume & Interest Snapshot
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| QCOM | CALL | TRADE | BEARISH | 09/20/24 | $11.15 | $11.0 | $11.0 | $190.00 | $110.0K | 9.7K | 100 |
| QCOM | CALL | TRADE | BEARISH | 11/15/24 | $12.5 | $12.25 | $12.25 | $200.00 | $61.2K | 323 | 111 |
| QCOM | CALL | SWEEP | BEARISH | 07/26/24 | $2.76 | $2.61 | $2.7 | $187.50 | $54.0K | 133 | 127 |
| QCOM | CALL | TRADE | BULLISH | 06/20/25 | $30.25 | $29.3 | $29.9 | $185.00 | $44.8K | 896 | 15 |
| QCOM | PUT | SWEEP | NEUTRAL | 08/02/24 | $4.1 | $4.05 | $4.05 | $177.50 | $42.5K | 68 | 0 |
About Qualcomm
Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G, 4G, and 5G networks. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones, as well as chips into automotive and Internet of Things markets.
In light of the recent options history for Qualcomm, it's now appropriate to focus on the company itself. We aim to explore its current performance.
Current Position of Qualcomm
- With a volume of 1,241,097, the price of QCOM is down -3.46% at $186.66.
- RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
- Next earnings are expected to be released in 7 days.
Expert Opinions on Qualcomm
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $218.0.
- An analyst from Susquehanna has decided to maintain their Positive rating on Qualcomm, which currently sits at a price target of $250.
- An analyst from Keybanc persists with their Overweight rating on Qualcomm, maintaining a target price of $225.
- In a cautious move, an analyst from HSBC downgraded its rating to Hold, setting a price target of $200.
- Consistent in their evaluation, an analyst from Cantor Fitzgerald keeps a Neutral rating on Qualcomm with a target price of $215.
- An analyst from Citigroup has decided to maintain their Neutral rating on Qualcomm, which currently sits at a price target of $200.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Qualcomm, Benzinga Pro gives you real-time options trades alerts.