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Volatility trader is targeting Qualcomm

Chris McKhann (chris.mckhann@optionmonster.com)

Qualcomm is apparently drawing a large volatility trade as shares sit in the middle of their recent range.

optionMONSTER systems show that a trader bought 3,000 October 50 puts for the ask price of $0.46. The volume was almost 10 times the strike's previous open interest, so this is a new position.

Just afterward, 21,000 QCOM shares changed hands in a single print. The combination of stock and options would create an overall position that is delta-neutral and therefore focused on changes in volatility as opposed to directional moves. (See our Education section)

QCOM is down 0.53 percent to $66.34. That is right in the middle of the $4 range that the chip maker has traded in since the beginning of 2013.

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