Motorola Solutions has been rising steadily for about two months, and one trader is positioning for more gains.
optionMONSTER's Heat Seeker tracking system detected the sale of 1,000 January 50 calls for $4.80 and the purchase of 2,000 April 55 calls for $2.37. Volume was below open interest in the nearer-term contracts and above it in the later-dated options, indicating that a long call position was rolled to a higher strike three months into the future. (See our Education section)
The trader is probably taking profits from the January 50 call sale and applying them to the April 55 purchase, allowing him or her to double the size of the position. The calls are now looking for MSI to gain more than 5 percent by expiration in mid-April.
MSI is off 0.13 percent to $54.53 in midday trading, but shares have been trending higher since climbing from support around $50 in late October. The company makes devices such as police radios, barcode scanners, and wireless-networking equipment.
Total option volume in the name is already more than 7 times its daily average in the last month. No puts have traded in MSI so far in the session.
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