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Strategies & Market Trends : Option Strategies

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To: Bridge Player who wrote (1835)1/27/2017 12:46:46 PM
From: robert b furman  Read Replies (4) of 2591
 
Hi Bridge,

Some one here trades Qcom regularly.

QCOM 6 year low is 42.24.

Note how Macd has just begun dropping.

screencast.com

I'll put this on a watch list to sell 45.00 puts out innto January 2018.

This is a great company ,but the monopoly allegations from AAPL about QCOM requiring all purchases will give legal expense a long time and a fine followed by lower margins.

Current put premium is good ,but I think it will get better.

January 2018 45 puts sell for $2.82 - $2.84 That's a net purchase price of 42.17. With a dividend of $2.12 that's a yield of just over 5.02 %. Premium to net purchase price is 6.7% annualized. My bet is it will get into the 6.% yield and 12-145 % premium to net purchase price.

QCOM is a class company and no doubt destined to use their RF radios in the many Internet of Things being developed.

Watching this one and will be patient for the Macd to flatline.

Just a FWIW.

Bob
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