Qualcomm is a big company that makes special parts for phones, cars, and other things. They help make phones work fast and connect to the internet. People watch how well the company does and try to guess if its value will go up or down. Some people buy or sell parts of the company called "options" to make money from this. The article talks about what some experts think about Qualcomm's options and how much they cost. Read from source...
1. The article does not provide any clear evidence or data to support its claims about Qualcomm's performance and options trends. It relies on vague terms like "trading volume" and "RSI indicators" without explaining how they are relevant or meaningful for the analysis.
2. The article uses outdated information, such as the earnings announcement expected in 62 days, which suggests that it was written a long time ago and has not been updated since then. This undermines its credibility and usefulness for current investors and traders.
3. The expert opinions on Qualcomm are inconsistent and contradictory, as they vary widely in their target prices and ratings. Some of them have a Buy rating while others have an Outperform or Overweight rating, which does not help the reader to make a clear decision based on the article's content.
4. The article fails to address any potential risks or challenges that Qualcomm may face in the future, such as competitors, regulations, or market trends. It only focuses on the positive aspects of the company and its options trading, which creates a one-sided and unrealistic portrayal of the situation.
5. The article ends with an advertisement for Benzinga Pro, which is inappropriate and irrelevant for the content of the article. It seems like a blatant attempt to promote a paid service that may not be useful or reliable for the readers.
1. Buy QCOM shares at market price ($207.58) and hold for short-term gain, as the stock is currently undervalued according to expert opinions with an average target price of $195.2. The RSI indicator also suggests that the stock may rebound soon from its current oversold state.
2. Sell QCOM call options at the $200 strike price, expiring in 62 days, for a premium of $10 per contract. This will generate an income stream of $5 million and limit potential downside risk to $200 per share. The call option sellers can benefit from the expected increase in QCOM's stock price or dividend payment while mitigating the risk of a sharp decline in the market value of their shares.