Buy These 2 Chips on Dips!

"Chips and dips" aren't just for Super Bowl parties anymore. In the
markets, they go equally well together, and best of all, you don't regret
overdoing it the next day! Buying chipmakers' call options when their prices
dip means you'll be positioned to potentially double your money when they run
higher. And today, I have two call option trades for you that are designed to do
exactly that. Qualcomm (NASDAQ: QCOM ) – which designs, manufactures and
markets digital wireless telecom products and services based on its code
division multiple access (CDMA) technology and other technologies – is ready
to explode and break out of this weekly bullish ascending triangle. Technical
analysts pay close attention to how long the triangle takes to reach its apex.
The general rule is that prices should break out – that is, clearly penetrate
one of the trendlines somewhere between three-quarters and two-thirds of the
horizontal width of the formation. The breakout, in other words, should occur
well before the pattern reaches the apex of the triangle. This is great news for
a stock like QCOM that is on the cusp of breaking out to new decade highs! The
trade here would be to buy the QCOM Jan 60 Call options on any dip under $1.50 ,
with a price target of $3. Another chip to buy on a dip is ARM Holdings (NASDAQ:
ARMH ) which designs microprocessors, physical intellectual property and
related technology and software, and licenses/sells development tools to
electronics companies – is ready to explode and break out of the 2011 bullish
rectangle, which is also known as an "upside breakout pattern." An upside
breakout occurs when the price of a stock breaks out through the top of a
trading range. This indicates that prices will rise explosively over a period of
days or weeks as an almost vertical uptrend appears. The narrowness of the
trading range can also be used to gauge the breakout. To determine the
narrowness of the trading range, compare the upper boundary with the lower
boundary of the trading range. If the trading range has a small difference
between the upper and lower boundary (making it narrow) then the breakout is
considered stronger and more reliable. The trade here would be to buy the ARMH
Jan 30 Call options on any dip under $2 , with a target price of $4.