by Ian Harvey
March 25, 2018
OUT WHILST THE GOING IS GOOD!
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
QUALCOMM, Inc. (NASDAQ:QCOM)
Here is an update of QUALCOMM’s winning options put trade after missing the takeover bid from Broadcom. This options trade was recommended to “Cut-To-The-Chase” Members & “Armchair” Members of Stock Options Made Easy, on Thursday, March 22, 2018 -- in the article ““Cut-To-The-Chase” Recommendations - Week Beginning Monday, March 19, 2018”; which produced excellent potential profits of 138% within two days of executing the trade!
NEED TO BE IN TO PROFIT!
QUALCOMM, Inc. (NASDAQ:QCOM), U.S. mobile chipset giant, received a big downgrade last week, and near-term prospects are pointing towards continued deterioration in the company’s margins.
Broadcom's takeover bid for Qualcomm drove up sentiment for both Broadcom stock and its target. However, President Trump stepped in and quashed the biggest deal in the history of the technology industry. In doing so, both AVGO and QCOM look ugly.
It seems that Trump pulled the plug because the QCOM deal raised national security concerns. But just as importantly, he wasn't going to let a "foreign-ish" company with possible ties to China take over an American stalwart…….continue reading…….
** OPTION TRADE: Buy the QCOM APRIL 20 2018 55.000 PUT at approximately $1.20.
QCOM saw its stock price drop from $56.83 Thursday morning down to a low of $53.87 by Friday afternoon.
The world’s largest maker of chips for mobile phones is struggling with the fallout from the proposed acquisition, which was blocked earlier this month by an executive order from U.S. President Donald Trump, citing security concerns.
Even with Broadcom’s bid derailed, Qualcomm faces the same issues that have driven down its stock and made it a target -- costly legal battles with regulators and key customer Apple Inc. over the chipmaker’s lucrative licensing business and the loss of market share for its products.
The most immediate issue is the delay of Qualcomm’s purchase of NXP Semiconductors NV, which has dragged on through regulatory scrutiny for more than a year and is still being looked at by Chinese authorities. NXP is crucial to Qualcomm’s plan to diversify its sources of revenue into automotive chips.
So, for those traders who managed to
execute this trade recommended by Stock Options Made Easy; a nice tidy
potential profit of 138% was to be made within two days.
"YOU NEED TO BE IN IT TO WIN IT!"
Now is the time to decide if it is worth considering taking another put trade on QCOM stock. How low will the stock go?
It is nearly always prudent to exit a trade before an unknown incident occurs that could rattle a sound profit, and this is a fine example of such a situation.
As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, as seen in this scenario, but during earnings season this strategy has been very profitable.
Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.
Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
What To Do Now…….
If you interested in being part of this profitable action just click here……