NEW DIRECTIONAL CALL PLAYS
QUALCOMM Inc. - QCOM - close: 74.72 change: +0.21
Stop Loss: 73.75
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on January 29th
New Positions: Yes, see below
Why We Like It:
QCOM is in the technology sector. The company develops digital communication equipment. According to their website QCOM is the world leader in 3G, 4G, and next-generation wireless technologies (e.g. smartphone technologies).
This stock has been consolidating sideways in the $72-74 zone for almost seven weeks. Shares are finally starting to break out from this trading range. I am suggesting a trigger to buy calls at $75.25. If triggered our short-term target is $79.75. This is a short-term trade. QCOM is due to report earnings on January 29th. Yet Apple (AAPL), who QCOM does a lot of business with, reports earnings on January 27th. We will definitely plan to exit prior to QCOM's earnings report and might consider an exit ahead of AAPL's report.
FYI: The Point & Figure chart for QCOM is bullish with a $93 target.
Trigger @ 75.25
- Suggested Positions -
Buy the Feb $75 call (QCOM1422B75) current ask $1.75
Entry on January -- at $---.--
Average Daily Volume = 8.3 million
Listed on January 16, 2014