Puts bet on pullback in Freescale
Traders are apparently betting on lower prices in Freescale Semiconductor.
optionMONSTER's Depth Charge system detected the purchase of 3,970 October 22 puts this morning for the ask price of $1.35 on a fairly wide bid/ask spread. The previous open interest was just 348 contracts, showing that today's trade is a new position.
The put buying isn't tied to any trading in the underlying stock identified by our systems today. Given that these contracts are in the money , this is very likely an outright bet that shares will fall by expiration in mid-October rather than a protective hedge on a long position. (See our Education section)
FSL is down 1.57 percent to $21.35 this morning. The chip maker was near $22 at yesterday's intraday highs, its best levels since falling from above $24 with earnings results in late July.
Total option volume has already surpassed 5,000, more than 6 times its full-session average for the last month. Only 134 of those contracts are calls, a reflection of the day's bearish sentiment.
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