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Fast Money 360: Qualcomm

Monday, 24 Jan 2011 | 6:15 PM ET

With shares of Qualcomm up 16% over the past 3 months, how should you game this stock into – and in the wake of – earnings.

Seems like a good time for Fast Money 360.

Find out what fundamentals, technicals and insights from the options world all suggest lie ahead for this stock.

Fast Money 360: Qualcomm
A look at why Qualcomm could be a buy ahead of earnings.

FUNDAMENTALS

Jim Kelleher of Argus is a buyer Qualcomm.

He likes the company’s partnership prospects with Apple. “(They have) the potential to be in many, many more Apple devices going forward,” he says.

Additionally, “Qualcomm chips are used in a wide range of tablets and smartphone startups also using Qualcomm chips.” Those, he says, are drivers as well.

CHARTS

Robin Mesch of Robin Mesch Associates is bullish but a little less enthusiastic than Kelleher.

“Qualcomm really remains range bound,” says Mesch. ”(Although) it’s more of a buy here, than a sell, it’s pretty much trapped between current prices and $53.”

And if you think the stock is about to break out, think again. ”It wouldn’t look like it looks now if it was going to break out,” she says.

OPTIONS

Scott Nations of NationsShares is solidly bullish. “In Qualcomm I’d be a buyer,” he says.

He likes the volume of upside call buying. “8 out of the 10 most active options last Friday were calls. We saw buyers in the Feb 45 calls, Feb 52.50 calls, so buyers of these options are bullish. They expect Qualcomm to do well.”

OTHER INSIGHTS

Above $50, I think this stock is a buy, says Guy Adami. They appear to be in the sweet spot.

I agree that the Qualcomm story remains in tact, says Joe Terranova. I also think it should trade higher.



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Trader disclosure: On Jan. 24, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Adami's wife works for (MRK); Terranova Owns (UPL); Terranova Owns (VRTS); Terranova Owns (PVH); Terranova Owns (GM); Terranova Owns (CVI); Terranova Owns (CNQ); Terranova Owns (LTD); Terranova Owns (C); Terranova Owns (PEP); Terranova Owns (CPX); Terranova Owns (ARUN); Terranova Owns (MS); Terranova Owns (RSH); Terranova is short Gold; Weiss owns (UUP); Weiss owns (TBT); Weiss owns (QCOM); Weiss owns (MXIM); Weiss owns (VZ); Weiss owns (WFR); Weiss owns (JPM); Weiss owns (MEE); Weiss owns (BTU); Weiss owns (FAS)

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