Traders Buying Put Protection In Qualcomm (QCOM, RIMM, NOK)

Posted in Options 
September 3rd, 2008

We are starting to see some increased put option buying in Qualcomm Inc. (NASDAQ: QCOM) today.  This is after CNBC comments this morning from CEO Paul Jacobs where he commented that higher-end smartphone and PDA-phone replacements seem to be slightly longer replacement cycles than in the past.  Based upon the current economy and based upon the features offered in so many current phones that have been on the market a year or more, that doesn’t seem all that surprising.

Below you can see the trading volume in September and October Calls and Puts with today’s contract volume as of 12:04 PM EST:

SEPT CALLS

  • 47.50   495
  • 50.00   4,714
  • 52.50    6,051
  • 55.00    1,820

SEPT PUTS

  • 45.00    1,168
  • 47.50    1,412
  • 50.00    3,531
  • 52.50    2,338
  • 55.00    1,219

OCT CALLS

  • 50.00    4,223
  • 52.50    5,597
  • 55.00    958

OCT PUTS

  • 40.00    2,157
  • 45.00    1,281
  • 47.50    1,399
  • 50.00    14,602
  • 52.50    8,853
  • 55.00    1,697

Qualcomm shares are down over 3% at $49.58 and we have seen over 14.5 million shares trade hands (23 million on average).  Research-in-Motion Ltd. (NASDAQ: RIMM) is down about 2.6% at $115.25 on slightly lower than normal trading volume.  Nokia Corp. (NYSE: NOK) is taking it on the chin the worst in the group with its shares down 4.6% at $23.32.  More interesting in Nokia is that it has seen over 15 million shares trade hands and that is close to its 16.7 million shares on an average day.  This also marks a 52-week low as the prior low was $23.58.

Jon C. Ogg
September 3, 2008

Comments are closed

-->