Options Trading News

As Motorola Solutions pushes back down toward support, a large combination trade is lighting up our systems.

MSI is down 2.67 percent to trade at $46.60. This is around a support level that goes back to early February, with only one close below it, from June 4. Shares were trading above $49 last week and above $52 on the first of May.

More than 11,000 MSI options have traded so far today, almost entirely composed of one combination. This volume is almost 20 times the daily average over the last month.

The big trade involved 5,500 each of the January 47 calls and 40 puts, with volume more than open interest at each strike. The puts traded for $1.48 and the calls for $3.55, according to optionMONSTER's systems.

About a minute later, a block of 556,452 shares of MSI traded for $47 even. So it appears that the options were traded against the stock position.

This would not be a directional play at all on the stock, but rather a way of trying to take advantage of option prices that the trader believes are out of line. (See our Education section)

The company makes devices such as police radios, barcode scanners, and wireless-networking gear.