Buy Alert: June 19, 2013

Marcus Haber | June 19, 2013

Buy Alert: June 19, 2013

Trade Details

Buy Qualcomm (QCOM) August $65 Calls for $1.20 or better

Why?

QCOM develops processors for tablets and smartphones – so the company is clearly enjoying the booming demand for mobile devices. And, with new, powerful tablets and smartphones becoming available this year, the company’s best in class products should sell even better.

What’s more, rumors are circulating that Microsoft (MSFT) could be switching to QCOM processors for its Surface tablet. Whether it happens or not, it just goes to show how much influence the company has in the mobile device arena.

QCOM shares are now trading at the bottom of range, and below all three major moving averages. Let’s buy the August $65 calls and give ourselves plenty of time for this trade to work.