Qualcomm (QCOM) Offering Possible 15.47% Return Over the Next 13 Calendar Days

Qualcomm's most recent trend suggests a bearish bias. One trading opportunity on Qualcomm is a Bear Call Spread using a strike $51.00 short call and a strike $56.00 long call offers a potential 15.47% return on risk over the next 13 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $51.00 by expiration. The full premium credit of $0.67 would be kept by the premium seller. The risk of $4.33 would be incurred if the stock rose above the $56.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Qualcomm is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Qualcomm is bearish.

The RSI indicator is at 21.17 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Qualcomm

[$$] Qualcomm's Smartphone Chipset JV Gets the Nod in China
Fri, 04 May 2018 07:37:13 +0000
The proposed joint venture was announced a year ago, but only this week approved by China’s antitrust regulator, the people said. The venture would be formed between Qualcomm and Datang’s subsidiary Leadcore Technology Co., as well as Jianguang Asset Management Co. and Wise Road Capital, Qualcomm has said.

Stock Selloff Hurts Arbitrage Traders
Thu, 03 May 2018 17:37:00 +0000
A disappointing earnings report from NXP Semiconductors (NXPI) late Wednesday and the selloff in the stock market today are depressing arbitrage stocks like Time Warner (TWX) and Aetna (AET) that are the subject of announced takeover deals. Analysts following the government’s antitrust challenge to the merger generally put a greater than 50% chance that AT&T will prevail.

Why NXP Semiconductors NV Shares Plunged Today
Thu, 03 May 2018 16:25:00 +0000
The Dutch microchip maker reported fairly decent first-quarter results, but management didn't have much to say about the pending merger with Qualcomm.

Why Did Analysts Turn Bearish on Qualcomm Post-Fiscal 2Q18?
Thu, 03 May 2018 14:34:07 +0000
Analysts have turned slightly bullish on Intel (INTC) because of strength in the data center business, but they’ve become a little bearish on Qualcomm (QCOM) even though its fiscal 2Q18 earnings (for the period that ended March 25, 2018) beat analysts’ consensus estimate. What caught analysts’ attention was Qualcomm’s patent licensing division, from which it earns the majority of its profits. Qualcomm has guided QTL (Qualcomm Technology Licensing) revenue of $950 million for fiscal 3Q18, which is ~$250 million lower than analysts’ estimate of $1.3 billion. This lower revenue guidance is the result of the new licensing framework the company announced on its fiscal 2Q18 earnings call.

Qualcomm More Optimistic Than Analysts about Fiscal 3Q18
Thu, 03 May 2018 14:32:20 +0000
Qualcomm (QCOM) reported better-than-expected fiscal 2Q18 earnings, indicating that smartphone declines are not that severe. For fiscal 3Q18, Qualcomm expects to post non-GAAP (generally accepted accounting principles) revenue of $4.6 billion–$5.6 billion and EPS (earnings per share) of $0.65–$0.75, which is lower than fiscal 2Q18 EPS of $0.80. Qualcomm’s weak guidance is still more optimistic than analysts’ estimate of $5.5 billion for revenue and $0.66 for EPS.

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