My old put in QCOM expired out of the money over the weekend.
music selection: “Angry Again” — Megadeath
Qualcomm is one of the Big Cheap Tech names I like to play for income. They generate options premiums like a tech company but behave more like a utility with their steady cash flows and wide moats. They also carry enormous amounts of cash and short term investments on the balance sheet making insolvency almost impossible. They also have decent yields and tend to raise distributions.
On Monday, I sold QCOM160722P00053500 for 1.20 a share. The trade will be in force for 47 days. It yields 17.42% on an annualized basis and enjoys 4.81% downside protection. I’d be happy to own if assigned and write covered calls against the position until the inevitable price recovery.
Devour your prey raptors!