Options Strategy For QUALCOMM, Inc. (QCOM), Bay Crest Bets Big On Stock

Bay Crest Partners Equity Derivatives Strategist Anshul Agarwal shared tips with viewers on how to play the “options market” in general given the near record highs observed on the S&P 500 (INDEXSP:INX) and drilled down into the prospects of the options put out by telecom infrastructure services provider QUALCOMM, Inc. (NASDAQ:QCOM).

QUALCOMM, Inc. (NASDAQ:QCOM)

Mr. Agarwal said that the market rally has been driven by strong earnings being reported by companies.

“Last week there were concerns about Geo-political concerns in Ukraine and Israel, but right now, as of today the markets is fully focused on earnings. Stocks are moving based on earnings and we are seeing huge moves in stocks where the implied moves are quite low,” he added.

Mr. Agarwal also gave specific trading tips to investors on QUALCOMM, Inc. (NASDAQ:QCOM).

“My strategy is a Call Spread, stock is breaking out from its six months range right now, based on some note by Cohen analyst yesterday. It was up 2.5% yesterday,” he said

Mr. Aggrawal also said that he wants to buy August 15 ’82.5 Call’ at 90 cents and sell 86 August 15 Call spread, and pay around 90 cents to a dollar for it.

He then went on to say that QUALCOMM, Inc. (NASDAQ:QCOM) stock moves by about 3.5 percent on an average post earnings and based on historical data for the last nine quarters, then the trade would give him a good risk reward.

QUALCOMM, Inc. (NASDAQ:QCOM) reported its third quarter results yesterday after the market close. The highlights of the results have been the $6.8 billion revenue generated by the company which was up by 9% YoY basis, and the GAAP EPS was $1.31, up by 46 percent on YoY basis and 15 percent on QoQ basis. QUALCOMM, Inc. (NASDAQ:QCOM) also raised its EPS guidance for the full year 2014.

Bay Crest’s derivatives analyst also went on to point out that large cap names like Apple Inc (NASDAQ:AAPL) and Microsoft Inc (NASDAQ:MSFT) were “moving less than the implied moves on upside.”  On being questioned by the Bloomberg TV presenter if this depicted a lack of clarity in the investor thought, Mr. Agarwal said that, “I think it is just people  trying to figure out at where the stock is going to settle, and they are playing to adjust their positions based on what places they have put on, ahead of earnings. Sentiment was bullish going in, but it turned out to be not so bullish as a result, initially the first reaction was to get out of positions and then to hedge in again.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!