Shares of Qualcomm Inc (NASDAQ:QCOM) are surging 11% to trade at $148.85 this morning, after reports surfaced that the company is partnering with OpenAI to supply processing chips for smartphones. Today's jump has pushed the shares back above the 100-day moving average for the first time since early January and is chipping away at QCOM's year-to-date deficit of 13.4%.
There have been 108,000 calls traded already this morning, six times the intraday average amount and triple the number of puts. The June 175 call is seeing the most attention, with the weekly 5/1 160-strike call trailing closely behind. Sell-to-open activity is also present at the latter.
Calls traders have already been circling, per the stock's 10-day call/put volume ratio of 2.86 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 70% of annual readings.
Lastly, Qualcomm stock's Schaeffer's Volatility Scorecard (SVS) comes in at 18 out of 100. In other words, shares have consistently realized lower volatility than its options have priced in over the past 12 months, making it a premium selling candidate.
