Seagate trader positions for downside

optionMONSTER

Seagate Technology saw bullish option activity earlier this week, but today's trading is positioning for the downside.

optionMONSTER's Depth Charge system shows that a single block of 8,400 January 26 puts was purchased for the ask price of $0.71. The volume was more than 4 times the strike's open interest at the start of the session, so this was a new position.

The put buying isn't tied to any trading in the underlying shares that we can see today, though it could be hedging an existing long position against the possibility of a pullback or any "fiscal cliff" volatility. The puts could also be an outright bearish play that would only require the stock price to return to levels of week.

STX is down fractionally at $28.37 after running higher last week with January 37 call buying . The computer hard-drive maker was below $25 last week at its lowest levels since early July and at 52-week highs above $35 in mid-August.

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