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December 6, 2011  Tue 2:16 AM CT

One big investor thinks Xerox is going to get interesting.

optionMONSTER's tracking systems detected the purchase of about 11,900 contracts each in the July 8 puts for $0.93 and the July 9 calls for $0.69, resulting in a cost of $1.62. Volume was more than 75 times open interest in both strikes.

Unlike a strategy that is strictly long or short, this trade is designed to profit from a big move in either direction. Because the investor owns both calls and puts, he or she also stands to profit from an increase in option premiums overall, which would result from higher implied volatility readings.

XRX rose 1.7 percent to $8.36 yesterday and has been trading in a range since it dropped over the summer along with the rest of the market. Yesterday's trader may be looking for a move this week because the imaging company is scheduled to present at the Barclays Capital Global Technology Conference at 2 p.m. ET on Thursday.

The strategy is known as a strangle because it focuses on two strike prices on either side of the stock's current level. (See our Education section)

The trade accounted for about two-thirds of XRX's option volume in yesterday's session.
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