Dan Nathan Sees Unusual Options Activity In QUALCOMM

On CNBC's Options Action, Dan Nathan spoke about high options activity in QUALCOMM, Inc. QCOM. He said that call options volume on Tuesday was two times higher than the average daily volume, but it looked to him that traders were closing bullish bets.

When the stock was trading at $65.50, there was a seller of 2,000 contracts of the January 67.5 calls for $2.42. Nathan thinks that a prior bull sold to close a long position in the name. He added that traders who think that there is more upside in QUALCOMM should buy calls, instead of buying the stock.