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Dan Nathan Sees Unusual Options Activity In Qualcomm

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On CNBC's "Options Action", Dan Nathan spoke about unusually high options volume in QUALCOMM, Inc. (NASDAQ: QCOM). He said that the options volume was 2.5 times the average daily volume.

There was one trade that caught Nathan's attention. When the stock was trading at $56.80, a trader sold 9,000 contracts of the July 50 puts for 60 cents and bought 9,000 contracts of the July 60/65 call spread for $1. The total cost of the trade is 40 cents. If the stock drops below $50 at the July expiration, the trader is going to have to own the stock at $50. The trade is going to be profitable if the stock moves above $60.40 at the July expiration. Its maximal profit is $4.60.

Posted-In: CNBC Dan Nathan Options ActionOptions Markets Media


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