QCOM support I see is at 59, and then stronger support at 50. Weekly stochastic is very low, while daily is still coming
down a little but is also very oversold, so if Naz does not retest it's lows near 3521, then this may not reach 50 again. Even
3700 support may not force this down below mid-fifties. What makes you ask?
Even in your short presence at SI, you have gained me and many others as your admirers. Some might suspect that your move to SI is to have you and your followers a better forum than RB and would form an exclusive group. However, you have shown that you are far beyond that. I want to thank you from the deepest of my heart for allowing and reaching others to benefit from your expertise.
Although I have been in the market for many years, there are still mountains of knowledge out there that need to be climbed. Your benevolent efforts to share your expertise are really appreciated.
What makes you ask?
Specifically about QCOM: As I posted on your thread, I write a lot of put options. The past few days I have written 85 put contracts on QCOM oct/55 for $ 4 1/4. This option has a breakeven point of 50 3/4. Your TA on QCOM affirms that. My analysis was that QCOM was way oversold, and did not participate in the chip rally, Any strong support above 50 is good enough risk for me. In addition, my selling this past week is to take psychological advantage of having August as the front month for the option. Therefore next week Oct expiry "seems" just 1 month away which will sccelerate the time decay.
From a return on investment:
margin requirement per contract $ 11.25 K
premium $ 4.25 K for a return of 38% in two months. I am satisfied with that.
Thanks again and Best regards
Paul |
