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June 25, 2013  Tue 2:45 AM CT

Lear has pulled back in recent days, but one trader is looking for its shares to stay range-bound for the rest of the year.

optionMONSTER systems show that a trader sold 15,000 December 55 puts for the bid price of $4 on wide bid/ask spread. This is clearly a new position, as the strike's open interest was just 11 contracts before the trade appeared.

A block of 645,000 LEA shares went off for 56.05 a few minutes after the puts changed hands. That was the largest stock trade in the name by factor of 10.

The combination of stock and short puts creates an overall position that is delta-neutral and is looking for LEA to be range-bound and/or for the actual volatility to be less than that implied by the options. (See our Education section)

LEA was down 1.46 percent to close at $57.23 yesterday but was well off its session lows under $56. That was the lowest level since shares gapped on the auto-parts company's April earnings report. Shares climbed above $61 at the high in mid-May.

Total option volume in the name was 10 times its daily average over the last month. 
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