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Bonus Trade Idea: Qualcomm Inc.

Published 08/11/2014, 07:54 AM
Updated 05/14/2017, 06:45 AM

Here is your Bonus Idea with links to the full Top Ten:

QUALCOMM Incorporated (NASDAQ:QCOM)
QCOM Daily Chart

Qualcomm had a long run higher from the July 2013 bottom near 59 to the top just a couple of weeks ago at 81.87. Since then it has pulled back just over 38.2% of that move up and finding support at 72, which has been support previously. Friday’s move back higher suggests the pullback may be over and gives a possible trade. There is resistance higher at 74.20 and 75.85 followed by 77.80 and 80.70 before the prior top. Over that and an AB=CD pattern would target 84.50. Support lower comes at 72 and then 70.20.

Trade idea 1: Buy the stock now (over 72) with a stop at 71.50.

Trade Idea 2: Buy the stock on a move over 74.20 with a stop at 72.75.

Trade Idea 3: Buy the August 74 Calls (offered at 65 cents late Friday) on a move over 74.20.

Trade Idea 4: Buy the August 73/74 bull Risk Reversal (32 cents).

Trade Idea 5: Buy the September 12 Expiry 74 Calls ($1.45) and sell the August 75 Calls (24 cents), with a plan to sell weekly Calls each week against the September Calls to reduce the basis of the trade.

Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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