Alan Knuckman's Qualcomm Options Trade

Alan Knuckman of Bulls-Eye Option spoke on Bloomberg Markets about a bullish options trading idea in QUALCOMM, Inc. QCOM.

He said the stock is trading around 15 percent lower this year, while the tech sector is up 15 percent. On Friday, the stock reached a new relative low, but it had a higher close. There was also a bullish divergence because the stock didn't reach a new high in volatility, when it made a new low.

Knuckman wants to buy the October 50 call for $5. The trade breaks even at $55 or 2.61 percent above the current stock price. If QUALCOMM recovers to $60, the option is going to double in value.