QCOM at 200 SMA support and will likely revert back up or trade flat.
Shares : Long around the 200 SMA ($125) for $140 and $152.5+ Profit Targets.
Short Put : 110 strike expiring 4/16 for $1.3 Credit. Short 14.5 deltas with a 82.5% POP. $1000 BPE for a decent 13% ROC. Close at 50%-75% profit, 150%-200% Loss or 20 DTE, whichever comes first.
Let' us analyze the pre-pandemic company results:
We can see a strong trendline was formed from the beginning of 2019.
From the middle of 2018 the company was doing good: the average earnings per share was 0.8, and was holding for 2 years
The average price was ~72 on that trendline.
The after-pandemic results are 2-2.5 which is 2-3 times more!
QCOM has filled a previous gap in its chart today, it has its 200sma around 124 as support. Now that the gap has been filled i believe a reversal is in play and will get bought up to the next layer of resistance around 135.
Hit rock bottom after a earnings sell off followed by Nasdaq mini correction. bounce off the bottom of its channel today and I grab some contracts for 2 reasons.
1st - Over sold on all indicators RSI , MFI. and touch bottom of its. channel
2nd - President signed executive order for chip manufacturers (Sympathy play)
Yellow line is a downtrend .
If you haven`t bought at my first signal, maybe this dip will make up your mind:
Qualcomm Inc. fell 5.2% in Thursday’s pre-market trading after the chipmaker said on its 1Q FY21 earnings call that financial performance could have been stronger if it had not been “supply...
-QCOM has dropped near levels that haven't been seen since December and prior to that where the big earnings gap was created.
-As the reversal for a gap fill wanted to happen fast we notice that we are trading near levels prior used as support where we have $146 and $148 as we look to gap fill I will be looking at my first target of $152 to start entering the gap...
The Stock market overall is VERY extended
You might hear this term being used a lot these days.
For beginners, it could be a confusing thing.
In trading we like to time our entries. We don't want to buy something when its "too expensive"
In Chart terms, an expensive stock is one that has trend strongly for a period of time and showing signs of Exchaustion or...
These spreads have some good risk / reward with the semi conductor shortage and QCOM still at a decent p/e after the dip.
buying the 19th Mar $145.00 Call
selling the 19th Mar $150.00 Call
breakevens at 147.40
Max Profit is 108%