Market Overview

Alan Knuckman's Qualcomm Options Trade


Alan Knuckman of Bulls-Eye Option spoke on Bloomberg Markets about a bullish options trading idea in QUALCOMM, Inc. (NASDAQ: QCOM).

He said the stock is trading around 15 percent lower this year, while the tech sector is up 15 percent. On Friday, the stock reached a new relative low, but it had a higher close. There was also a bullish divergence because the stock didn't reach a new high in volatility, when it made a new low.

Knuckman wants to buy the October 50 call for $5. The trade breaks even at $55 or 2.61 percent above the current stock price. If QUALCOMM recovers to $60, the option is going to double in value.

Posted-In: Alan Knuckman Bloomberg MarketsOptions Markets Media


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