Story
Qualcomm Options Volume Skews Bullish as Stock Rises Over 4.6%
Summary
Options traders demonstrated strong bullish conviction for Qualcomm Inc. as the company's stock rallied, with the volume of call options outpacing puts by more than four to one.
Qualcomm Inc. (NASDAQ: QCOM) shares surged 4.63% to $203.26 in late trading on Friday, accompanied by a significant wave of bullish activity in the options market. Data showed a pronounced directional bias, with call options volume exceeding put options volume by a ratio of more than 4-to-1.
Bullish Bets Drive Volume
According to market data from Investing.com, a total of 197,445 options contracts on Qualcomm changed hands. The breakdown revealed a clear upward bias from traders:
- Call Options: 158,528 contracts
- Put Options: 38,917 contracts
This activity resulted in a call-to-put ratio of 4.07, a figure that typically indicates strong bullish sentiment. Notable activity included significant volume in out-of-the-money calls, such as the February 2027 $250 strike and the December 2026 $260 strike, suggesting some traders are positioning for a continued rally back toward the stock's 52-week high of $259.92.
A Notable Hedging Position
AdDespite the overwhelmingly bullish call volume, the single most active contract was a large put trade. A new position of 5,217 contracts was opened on the January 2028 $320 put.
Because this put is deeply in-the-money with the stock trading near $203, it is not likely a speculative bearish bet. Instead, market analysts often interpret such trades as a hedging mechanism, where an investor with a large long position in the stock buys downside protection. This type of strategic hedge can also be one leg of a more complex options structure like a collar.
Market Context
Friday's rally placed Qualcomm's stock in the upper half of its 52-week range of $121.99 to $259.92. The options activity suggests that while the prevailing sentiment is bullish, at least one large investor is using long-dated options to protect substantial gains in the semiconductor giant.
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