Show of support for Motorola Solutions
Mike Yamamoto | firstname.lastname@example.org
A trader sold 5,000 October 46 puts in a single print for $0.08, optionMONSTER's tracking systems show. The volume dwarfed open interest in the strike of just 917 contracts at the start of the session, clearly indication a new position.
Shares of the company, which makes devices such as police radios, barcode scanners, and wireless-networking equipment, rose 0.35 percent to close at $51.08 yesterday. MSI ran up from below $45 in mid-July but pulled back after hitting multi-month resistance near $52 on Sept. 21, and the stock has been trading sideways since.
Yesterday's put seller apparently believes that MSI will be above the $46 strike price at expiration in two weeks. If the shares are below that level, the trader will likely be required to buy the stock at an effective price of $45.92 once the credit from the put sale is factored in. (See our Education section)