Dan Nathan Sees Unusual Bullish Options Activity In QUALCOMM
On CNBC's Options Action, Dan Nathan analyzed bullish options activity in QUALCOMM, Inc. (NASDAQ: QCOM). He noticed that calls outnumbered puts 4 to 1 and the volume was twice the daily average volume.
Right after the opening, there was a trade that caught Nathan's attention. A trader bought 3,000 contracts of the October 70 calls for $3.20 each. The break-even for the trade is at $73.20, or 5 percent higher.
Nathan added that the stock has underperformed so far and despite huge buyback program, there is some risk because of fundamental issues. He thinks that the best idea is to define risk in the name.
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