Motorola Solutions is barely a week old as an independent
entity, and the bulls are already targeting it.
optionMONSTER's Heat Seeker tracking system detected the purchase
of 5,000 January 2012 40 calls for $3.90 against open interest of
just 20 contracts. The trade accounted for almost all the options
volume in the stock during yesterday's session.
MSI fell 0.29 percent to $37.85 yesterday and has been drifting
lower since Jan. 4, when it was created from the breakup of the old
Motorola. The company inherited most of the businesses that are not
related to cell phones, such as police radios and
The other half of the firm was spun off into Motorola Mobility
). After the deal was complete, the old entity that traded under
the ticker MOT changed its symbol to MSI and did a 1-for-7 reverse
MSI is the larger company, with a market cap of about $13 billion,
compared with about $10 billion for MMI.
Adjusted for the split, MSI peaked at $40.37 on Jan. 5. Since then
it has been pulling back and now trades at a level that was
resistance in late December, which may cause some chart watchers to
think it's in a bullish uptrend.
Yesterday's call buying in MSI reflects a long-term bullishness in
the stock, which must climb at least 16 percent over the next 12
months for the trade to turn a profit.
(Chart courtesy of tradeMONSTER)
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