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Todd Gordon's Qualcomm Trade

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Todd Gordon's Qualcomm Trade

Todd Gordon of Ascent Wealth Partners suggested on CNBC's "Trading Nation" a bullish options trade in Qualcomm, Inc. (NASDAQ: QCOM). Ascent Wealth Partners has a long position in the name and it's holding it in its dividend portfolio.

Gordon said the stock is trading close to its resistance and he expects it to break out above the resistance on good earnings results. The company managed to beat earnings in the last six quarters.

To make a bullish bet, Gordon wants to buy the August $95/$100 call spread for a debit of $1.62. The trade breaks even at $96.62 or 4.76% above the closing price on Friday. It can make a maximal profit of $3.38 in case the stock jumps to $100 or higher. It needs a move of around 8.5% to reach its maximal profit potential.

 

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