Option Activity Alert: Call Buying Climbs on QUALCOMM, Inc.

by Elizabeth Harrow (eharrow@sir-inc.com)

source:schaeffersresearch.com
Are traders speculating bullishly, or just hedging their bets?

QUALCOMM, Inc. (QCOM) has become a favorite target of call buyers lately. During the past five days, the International Securities Exchange (ISE) reports that traders have bought to open 14,684 calls on the equity, compared to 920 puts. The security's five-day call/put volume ratio of 15.96 reveals that nearly 16 times more bullish bets than bearish were purchased during this time frame.

Taking a slightly longer-term look, QCOM's 10-day ISE call/put volume ratio smoothes out to a tamer 2.23, with calls bought to open more than doubling puts during the past two weeks. This ratio ranks in the 73rd annual percentile, suggesting that traders have snapped up calls over puts at a faster pace just 27% of the time during the past year.

However, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.87 indicates that skepticism still lingers among near-term traders. This ratio arrives in the 55th annual percentile, just barely on the bearish side of neutral.