One investor is buying Motorola Solutions on the pullback.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 2,500 January 45 calls for $1.53 and the sale of an equal number of April 38 puts for $1.64. The trade resulted in a credit of about $0.11 and is similar to owning shares in the company, which makes a range of devices such as bar-code scanners and police radios.
The strategy is designed to profit from a rally in the next two months, which would let the investor make money on the calls. He or she would remain vulnerable to a drop in the shares for an additional three months because of the puts.
MSI is up 0.28 percent to $43.74. The stock has spent the last six months consolidating between about $40 and $46 and is now attempting to bounce at its 200-day moving average following weakness in the broader market.
Earnings were better than expected the last two times quarterly results were released.
Overall option volume is 17 times greater than average so far today, according to the Heat Seeker.
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