Back Up The Truck On Qualcomm ($QCOM)

Last week the FTC came after Qualcomm (QCOM) right before President Obama departed. Coincidence? No way.

Then today Apple (AAPL) files suit against Qualcomm. I will take the opportunity to recommend Qualcomm (QCOM) here. This is positioning by Tim Cook for a settlement. Tim Cook is a “nasty man”.

To protect the position, we will buy the February $55 Put which costs $2.27 or $227. If you buy less than 100 shares, then still buy the put. If you own more than 100 shares, buy one put for each 100 shares you purchase.

Qualcomm’s  reaction is swift and fierce. They think this is bogus. This is the second stock this year I have recommended after last week’s short on Spirit Airlines (SAVE). We will start updating our recommendation each Thursday in a portfolio review.

Unlike others across the finance blogoshpere, once I recommend a name I stick with the recommendation.