Options Corner: QCOM

Core Insights - Qualcomm's stock performance has significantly lagged behind its peers in the semiconductor sector, with only a 4% increase over the past year compared to the SMH ETF's 42% rise [2][3] - The semiconductor industry shows clear winners and losers, with companies like Micron, Seagate, and Nvidia performing well, while Qualcomm and Texas Instruments are underperforming [3][4] Performance Analysis - Qualcomm's stock has faced resistance at the $175 level, which has been a critical point in its price history, and it recently broke through this resistance [4] - The stock is currently supported around the $153 level based on recent lows, indicating potential for recovery [4] - Technical indicators suggest a bearish outlook, with a significant drop in momentum and a key downside area identified around $160 [6] Trading Strategy - A bullish options strategy is proposed for Qualcomm, focusing on a call diagonal spread to capitalize on potential upward movement [9][12] - The strategy involves buying a slightly in-the-money call at a $172.5 strike and selling a higher strike call at $185, with the expectation that the stock will rise above $175 for profitability [11][12] - The implied volatility levels are favorable, with the strategy allowing for a low-cost entry point while targeting a significant price move [12][13]