Most speculators who buy options eventually get their heads handed to them. They serve much the same function as the house in Vegas. If you want to be a successful options trader, be a seller. One particular options strategy can work especially well for careful, informed sellers. A put, you may recall, gives the buyer the right to sell you a certain number of shares at a stipulated price for a fixed period.
Speculators buy puts because they expect the index to go down in the near future.
Historically, however, that s a poor bet. Of course, you also could try this strategy with put options on individual stocks. You need ample financial resources behind you, and a certain amount of sophistication about the markets. For most of us, a better alternative might be to find a money manager who specializes in options writing. Stay with QCOM for the long pull.