Dan Nathan Sees Unusual Options Activity In QUALCOMM, Inc.

On CNBC's Options Action, Dan Nathan spoke about unusually high activity in QUALCOMM, Inc. QCOM, which dropped 15.25 percent on Thursday. The options trading volume was 7 times higher than the average daily options volume and the stock reached its new 52 week low during the trading session on Thursday. Call options volume was 1.5 times higher than the put options volume. When the stock was trading at $52, Nathan noticed that one trader sold 10,000 contracts of the January 57.5 calls for $0.43 and bought 10,000 of the January 50 puts for $1.73. Nathan believes that this trade is a defensive collar against a long stock position and the trader had to pay $1.30 to put the trade on. It offers protection below $48.70.