A Closer Look at Qualcomm's Options Market Dynamics

Investors with a lot of money to spend have taken a bearish stance on Qualcomm 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 26 uncommon options trades for Qualcomm.

This isn't normal.

The overall sentiment of these big-money traders is split between 42% bullish and 46%, bearish.

Out of all of the special options we uncovered, 11 are puts, for a total amount of $705,185, and 15 are calls, for a total amount of $1,786,635.

Expected Price Movements

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $130.0 to $220.0 for Qualcomm during the past quarter.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Qualcomm's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Qualcomm's whale trades within a strike price range from $130.0 to $220.0 in the last 30 days.

Qualcomm Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

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.

Following our analysis of the options activities associated with Qualcomm, we pivot to a closer look at the company's own performance.

Where Is Qualcomm Standing Right Now?

• With a trading volume of 1,582,794, the price of QCOM is up by 0.41%, reaching $172.94.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 71 days from now.

Expert Opinions on Qualcomm

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $203.8.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * Maintaining their stance, an analyst from Piper Sandler continues to hold a Overweight rating for Qualcomm, targeting a price of $190. * An analyst from Evercore ISI Group persists with their In-Line rating on Qualcomm, maintaining a target price of $179. * An analyst from Rosenblatt persists with their Buy rating on Qualcomm, maintaining a target price of $250. * An analyst from Cantor Fitzgerald has revised its rating downward to Neutral, adjusting the price target to $160. * Reflecting concerns, an analyst from Benchmark lowers its rating to Buy with a new price target of $240.

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.