Qualcomm Stock Low Presents Bullish Opportunity

Semiconductor name Qualcomm Inc (NASDAQ:QCOM) sold off into the previous high zone and its April earnings bull gap level, now trading at its 126-day moving average. The 200-day trendline and 2024 anchored volume weighted average price (AVWAP) sit just below, making now a perfect time to buy calls.

QCOM is trading at the site of 175-strike put support, but the 170-strike is also a potential floor and could help if there's a entry Monday morning. Peak put activity resides at the 200-strike and could see its price back higher. Max Pain rolls higher into July expiration and we don’t see peak call activity until the 220 area.

QCOM has a front-month gamma-weighted Schaeffer's open interest ratio (SOIR) of 1.25, and these spikes often mark lows or near low opportunities. The security also sports a Schaeffer's Volatility Scorecard (SVS) of 76 out of 100, indicating it has tended to exceed option traders' volatility expectations during the past 12 months.

Our recommended August call has a leverage ratio of 5.1 and will double on a 21.4% rise in the underlying equity.