Markets

Bull adjusts trade in Motorola Solutions

Motorola Solutions has been trending steadily higher, and one investor is looking for the gains to continue.

optionMONSTER's Heat Seeker tracking system detected the purchase of 5,000 January 50 calls for $2.85 and the sale of an equal number of January 40 calls for $8.15. Volume was below open interest in the lower strike, indicating that an existing long position was rolled from one contract to the other.

The move let the trader collect $5.30 of premium while maintaining a long position in the maker of television set-top boxes and two-way radios. The trade allowed the investor to recover most of the capital at risk while maintaining upside exposure.

MSI ended the session down 1.35 percent to $46.15 but is still up 23 percent in the last three months. The stock gapped higher on April 28 after a rebound in corporate spending pushed quarterly results passed forecasts.

The company was formed when the old Motorola split in two late last year, with the mobile-phone business becoming Motorola Mobility Holdings (MMI).

Overall option volume in MSI was 17 times greater than average yesterday, with calls outnumbering put by 5 to 1.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MSI

Other Topics

Options