Options News
$QCOM option bulls quadruple money overnight
Upside option positions in Qualcomm (QCOM) that expire this Friday are rewarding bullish traders today. Yesterday on Jun. 27, Market Rebellion’s Unusual Option Activity Service found that 3,400 Weekly $130 calls, expiring Jul. 1, were bought for $0.94 to $1.41 with shares at $125.58. This was clearly fresh buying, as the open interest in the […]
Upside option positions in Qualcomm (QCOM) that expire this Friday are rewarding bullish traders today.
Yesterday on Jun. 27, Market Rebellion’s Unusual Option Activity Service found that 3,400 Weekly $130 calls, expiring Jul. 1, were bought for $0.94 to $1.41 with shares at $125.58. This was clearly fresh buying, as the open interest in the contract before the activity appeared was just 1,014.
Those calls have traded for as much as $6.97 so far today, quadruple their purchase prices. The stock rose 8.35% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.
Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.
QCOM was last up 4.77% to $133.24 this afternoon.
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