Dan Nathan Sees Unusual Options Activity In Qualcomm

On CNBC's "Options Action", Dan Nathan spoke about unusually high options volume in QUALCOMM, Inc. 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.