Earlier today when Qualcom Inc. was trading at 80.28, a customer sold 20,000 of the Jan 2015 65 puts collecting .82.? This is part of a large spike in open interest in the strike over the last few days.? This appears to be a cash secured put sale in order to collect premium.
The trader thinks the stock is either going to stay above 65 for the rest of the year,? or if the stock drops below 65.00 a share, the customer is willing to take delivery on the stock.
This trade should be viewed as mildly bullish and mildly short volatility as well.? Traders looking to piggy back could look at the 70/65 1 by 2 put spread for a credit as a play to be short volatility for a credit and take delivery at this customers levels.? Additionally, the trade breaks even at a lower price than the straight put sale.