A Closer Look at Qualcomm's Options Market Dynamics

Investors with a lot of money to spend have taken a bullish stance on Qualcomm (NASDAQ:QCOM).

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with QCOM, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 50 uncommon options trades for Qualcomm.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 34%, bearish.

Out of all of the special options we uncovered, 18 are puts, for a total amount of $778,407, and 32 are calls, for a total amount of $2,420,974.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $130.0 to $280.0 for Qualcomm over the last 3 months.

Analyzing Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Qualcomm options trades today is 1917.35 with a total volume of 8,314.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Qualcomm's big money trades within a strike price range of $130.0 to $280.0 over the last 30 days.

Qualcomm Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
QCOM CALL SWEEP BEARISH 08/16/24 $11.4 $11.05 $11.05 $210.00 $419.9K 5.8K 380
QCOM CALL TRADE BEARISH 08/16/24 $10.7 $10.6 $10.6 $210.00 $207.7K 5.8K 772
QCOM CALL TRADE NEUTRAL 01/16/26 $38.35 $36.65 $37.65 $210.00 $188.2K 343 101
QCOM CALL SWEEP BULLISH 06/21/24 $77.1 $73.65 $73.65 $130.00 $184.0K 3.8K 0
QCOM CALL TRADE BEARISH 08/16/24 $30.9 $30.5 $30.5 $180.00 $152.5K 696 50

About Qualcomm

Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G, 4G, and 5G networks. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones, as well as chips into automotive and Internet of Things markets.

Present Market Standing of Qualcomm Trading volume stands at 6,273,564, with QCOM's price up by 0.83%, positioned at $204.61. RSI indicators show the stock to be may be overbought. Earnings announcement expected in 69 days. What The Experts Say On Qualcomm

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $193.2.

Maintaining their stance, an analyst from Piper Sandler continues to hold a Overweight rating for Qualcomm, targeting a price of $185. An analyst from Argus Research has decided to maintain their Buy rating on Qualcomm, which currently sits at a price target of $205. An analyst from B of A Securities persists with their Buy rating on Qualcomm, maintaining a target price of $180. An analyst from Cantor Fitzgerald has revised its rating downward to Neutral, adjusting the price target to $190. An analyst from Canaccord Genuity has decided to maintain their Buy rating on Qualcomm, which currently sits at a price target of $206.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Qualcomm, Benzinga Pro gives you real-time options trades alerts.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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