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December 5, 2012  Wed 11:23 AM CT

TLAB: SEE CHART GET CHAIN FIND STRATEGIES
Tellabs popped last week, but one trader apparently thinks that what goes up may come down.

optionMONSTER's Depth Charge tracking program detected the purchase of about 1,800 December 3 puts for $0.05 against open interest of 882 contracts. Those puts lock in a selling price for the stock, so will appreciate in the event of a decline.

TLAB is flat at $3.37 in early afternoon trading but is up 17 percent in the last week. Most of the gains occurred on Friday, when the company announced that it would pay a giant special dividend of $1 per share.

Before that news came out, sentiment had been negative in the maker of telecom gear, which had been dropping since mid-2010 amid a stream of poor financial results. Today's trader apparently thinks the longer-term downtrend will continue after the recent pop.

Total option volume is quadruple the daily average in the name so far today, according to the Depth Charge.
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