To The Moon

$Qualcomm(QCOM)$'s recent performance suggests a significant shift in market sentiment. After jumping 8.42% on May 11 to close at $237.53, the stock has already surpassed the $220 target Argus Research set just ten days ago.

I am holding QCOM long-term and have been DCAing when QCOM experience some downward movement.

Bullish Continuation: Catalyst Analysis

The case for a continued rally until the next earnings (tentatively July 29, 2026) is supported by several new fundamental drivers:

• Diversification Beyond Mobile: The market is re-rating QCOM as an AI infrastructure play. CEO Cristiano Amon recently confirmed that Qualcomm’s data center processors will ship to a "major hyperscaler" by the end of 2026.

• Geopolitical Tailwinds: A 90-day US-China tariff pause has removed a major overhang regarding Android handset inventory in China, which previously suppressed the stock.

• Upcoming Catalysts: The June 24 Investor Day in New York is expected to provide more details on "Physical AI" and data center strategies, which could serve as a mid-quarter bridge to maintain momentum.

• Technical Breakout: QCOM has cleared major resistance at $205 (its previous 52-week high) and is currently in "price discovery" mode.

Using a Bull Put Spread to Capture Gains

A Bull Put Spread (selling a higher strike put and buying a lower strike put) is a high-probability strategy for an "existing investor" who expects the stock to stay above a certain level rather than just skyrocket.

Trade Setup Example

Since the stock is at $237.53, you might look at the July 17 or July 24 expiration (just before the July 29 earnings) to avoid the binary risk of the earnings report itself.

Why this works for existing investors:

Income Generation: If you already own the shares, this spread generates "credit" (premium), effectively lowering your cost basis while you wait for the July earnings.

Theta Decay: Since the stock has already had a massive 8% "pop," it may consolidate or trade sideways. A Bull Put spread profits from time decay (Theta) even if the stock doesn't move higher, as long as it stays above your short strike.

Risk Management: Unlike a naked put, the spread limits your downside if the "AI hype" cools off or the trade truce with China hits a snag.

Note: Be mindful of the Investor Day on June 24. Significant volatility often occurs around these events. If the stock continues to rally toward $250 before June, you might consider "rolling" your strikes higher to capture more premium.

This is how we are considering to play Bull Put spread for 26 June expiration for after the investor day.

Summary

Qualcomm (QCOM) is currently experiencing a powerful technical and fundamental breakout. After Argus Research hiked its target to $220 on May 1, the stock’s 8.42% surge on May 11 propelled it to approximately $237.53, signaling that the market is valuing the company beyond its traditional mobile handset roots.

Bullish Continuation Factors

The potential for further upside leading into the July 29 earnings remains high due to several catalysts:

• AI Infrastructure Pivot: Investors are increasingly viewing QCOM as a key player in "Edge AI" and data center diversification, moving it into the same valuation conversations as major semiconductor peers.

• China Recovery: Recent easing of geopolitical tensions has bolstered the outlook for the Android supply chain, a significant revenue driver for Qualcomm.

• Investor Day (June 24): This mid-quarter event serves as a likely "bridge" catalyst, where management may provide updates on hyperscaler partnerships, potentially sustaining buying pressure.

Strategic Execution: The Bull Put Spread

For existing investors, a Bull Put Spread is an excellent way to monetize the current momentum while managing risk. This strategy involves selling a Put at a higher strike price and buying a Put at a lower strike price for a net credit.

• The Setup: Using a July 17 expiration (avoiding the July 29 earnings volatility), an investor might sell the $230 Put and buy the $220 Put.

• The Advantage: This generates immediate income (premium) and allows you to profit even if the stock trades sideways or retraces slightly. Since you already own the shares, this acts as a "yield enhancement" strategy.

• Risk Mitigation: The long put at $220 defines your maximum loss on the trade, protecting you against a sudden reversal in the semiconductor sector.

Conclusion

With QCOM clearing its previous 52-week highs, the path of least resistance appears to be higher. Leveraging a Bull Put spread allows investors to capitalize on time decay (Theta) and high implied volatility without requiring the stock to make another massive vertical move to stay profitable.

Appreciate if you could share your thoughts in the comment section whether you think playing bull put spread option for QCOM with expiration date after its investor day would be appropriate.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire @MillionaireTiger appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.