To: Jon Koplik who wrote (82800 ) 1/26/2009 1:55:42 PM From: engineer Read Replies (1) | Respond to of 196843 Jon....is this you strangl,ing Qualcomm?thestreet.com Options: Betting on Qualcomm Range 01/26/09 - 01:39 PM EST , QCOM (Cramer's Pick) Jud Pyle CFA By Jud Pyle, CFA, chief investment strategist for the Options News Network Qualcomm(QCOM Quote - Cramer on QCOM - Stock Picks) manufactures and markets digital wireless communication products. After hitting a five-year high of $55 in August 2008, the shares have seen a decline like the rest of the market of over 35%. Today, however, at least one investor was willing to bet that the stock would sit in a range between now and March. In the first 30 minutes of trading this morning after the open, an investor sold more than 14,000 of the March 30-40 strangles for around $1.75. That means that the investor is selling the March 30 put and the 40 call simultaneously. In this case, he is selling the 30 put for around 65 cents and the 40 call for around $1.10. So why might the investor be selling this strangle? Well, for starters, he has maximum profit of $1.75 if the stock is between $30 and $40 at March expiration. Since the decline in the shares from the $55 level last August, the stock has not closed any lower than $29.21, which is the level it reached at the bear market lows of Nov. 20. The stock has also been hard-pressed to close above $40. Even back in late October when the market was charging just prior to Election Day, the peak close in QCOM was $39.72 on Oct. 30. Another thing that is interesting in this trade is that the investor is showing no fear in the face of upcoming earnings from QCOM. Earnings are scheduled for Wednesday, Jan. 28, after the market closes. Despite that potential catalyst for a move, the investor is still selling this strangle. v