Friday, April 1, 2022

Favorite call: Adding to QCOM and selling call

Underlying Security Symbol: QCOM

 

Qualcomm is not treating us well today but not everyone thinks it stinks.  The call buyers don't think it stinks as you will see.

Chinese order slow down and softening consumer sales made the big boys down grade this stock and the price has sunk to about $145.  

When I can invest $14,500 and receive a premium of $7.05, I call that good income investing.  QCOM has been good to me and if you read my most recent post it provided the most call premium income of all my stock during the first quarter of 2022.   Here we go in quarter 2, 2022.



 

 

 

 

 

 

 

 

 

 

 

Fundamentals remain good.  TTM Earnings are $8.73 per share.  Dividend payout is $2.72 which makes me comfortable.  If QCOM continues to sink, at least we're getting the dividend and I think it is safe.  Estimates for future earnings are in the $11.84 range and if they miss that QCOM may test it's 52 week low of $122.17.  Note the high of the year is  $193.53.   That is a lot space to work with.

 

MM MoneyMadam Data from Schwab.com and Marketxls

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