Put buying in Motorola Solutions

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Traders are positioning for a potential drop in Motorola Solutions, which reports third-quarter results next week.

About 2,000 November 60 puts were bought for $1.72 to $1.75 on Friday, according to optionMONSTER's Depth Charge tracking system. The volume was well above the strike's previous open interest of 699 contracts, indicating that it is new positioning.

These puts lock in the price where traders can sell the stock no matter how far it might fall. They could be protecting a long position or making an outright bearish bet, but either way they will expire worthless if shares remain above $60 through mid-November. (See our Education section)

MSI was down fractionally on Friday to close at $60.52. The company, which makes devices such as police radios and barcode scanners, gapped lower after its last two earnings reports but bounced off support at the $54 in late July and has been working its way higher since. Its next quarterly release is scheduled for Oct. 23 before the market opens.

Overall puts in the name outnumbered calls by more than 16 to 1 on Friday.

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