Todd Gordon's Qualcomm Options Trade
On CNBC's "Trading Nation," Todd Gordon said he's bullish QUALCOMM, Inc. (NASDAQ: QCOM) and he will likely add it to his portfolio.
Gordon is bullish because Qualcomm's chips are included in iPhone 12 and Apple Inc. (NASDAQ: AAPL) intends to include them in future models as well. He also sees a new tech boom with the 5G cycle. Technically, there is a big support at $125 and Gordon expects the stock to bounce off that price level. He also likes Qualcomm's recent relative strength.
Traders who want to buy Qualcomm should use options because of the election and the earnings, thinks Gordon. He would buy the Nov. 6, $126/$130 call spread for $1.78. The trade breaks even at $127.78 or 1.51% above the current stock price. Its maximal profit is $2.22.
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