Call Options on QCOM on 10/10/2012

Cell phone makers, wireless carriers, and governments worldwide call on QUALCOMM to engineer a quality conversation. The company pioneered the commercialization of the code-division multiple access (CDMA) technology used in digital wireless communications equipment and satellite ground stations mainly in North America. It licenses CDMA semiconductor technology and system software to equipment and cell phone makers. QUALCOMM's OmniTRACS satellite vehicle tracking system is used by the trucking industry to manage vehicle fleets, while QUALCOMM Ventures invests in wireless communications and Internet startups. Samsung Electronics accounts for more than 10% of annual sales.

Stockwinners is Bullish in this name for the following reasons :

1. QCOM is going to be upgraded by some of the major brokerages.
2. The record sale of I-phone 5 and new Samsung phone will improve sales and probability in this quarter.

Trade: Buy 1 Nov $62.5 call for less than $1.10

Note: The goal is to make this trade a spread after a move to the up side.

Breakeven & profit/Loss analysis:

• Breakeven on $63.60 by Nov expiration
• Profits above $63.60, Max profit is unlimited
• lose up to $1.10 between $63.60 and $62, max loss $1.10 below $62

The payoff table is presented below:

Trade Buy 1 November $62.50 Call at $1.10 For a net debit of $1.10 Profit/Loss Analysis Breakeven at $63.60 Maximum profit is unbounded Maximum loss is ($110.00) at strike of $62.00 Closing Summary Sold 1 November $62.50 Call at $0.94

Position closed on 11/15/2012 at price of $0.94 with a -14.55% loss in 35 days.

Updates

11/15/2012 10:44:12 AM

Although, Qcom beat on their earnings , this position did not end up a winner.  we are closing this position at a loss and not keeping it till  expiraiton . 

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