IB Options Brief: Motorola Solutions, Inc. (MSI) & AstraZeneca PLC (AZN)
MSI ñ Motorola Solutions, Inc.
No sign of May flowers for investors in Motorola Solutions, Inc., with shares in the provider of data communications and telecommunications equipment down roughly 9.0% since the start of the month. A burst of put buying on MSI this morning suggests some traders expect the price of the underlying shares to continue to slide in the near term. Shares in Motorola Solutions are currently down 0.85% at $47.47 as of 12:00 p.m. in New York.
Put buyers looked to the June $47 strike, picking up around 1,200 lots at an average premium of $1.41 apiece, and more than 3,200 put options at the lower June $46 strike at an average premium of $0.93 each. Traders long the $47 strike put start making money should MSIís shares decline another 4.0% to breach the average breakeven point at $45.59, while $46 strike put options are profitable given a 5.1% bearish move in the share price to $45.07.
Executives at Motorola Solutions are scheduled to speak at the Barclays Global Technology, Media and Telecommunications Conference next Wednesday and the Sanford C. Bernstein Strategic Decisions Conference on June 1st.
AZN ñ AstraZeneca PLC
Put buying on the maker of Crestor and other brand name pharmaceuticals this morning suggests shares in the name, which currently trade 0.60% lower on the session at $41.41, may have further to fall in the next four weeks. AstraZeneca popped up on our scanners today after roughly 1,000 puts were purchased at the Jun. $40 strike for a premium of $0.46 each.
The trader or traders snapping up the contracts are prepared to profit at June expiration should the price of the drug makerís shares decline another 4.5% to settle below the breakeven point at $39.54.
Note: The material presented in this commentary is provided forinformational purposes only and is based upon information that isconsidered to be reliable. However, neither Interactive Brokers LLC norits affiliates warrant its completeness, accuracy or adequacy and itshould not be relied upon as such. Neither IB nor its affiliates areresponsible for any errors or omissions or for results obtained from theuse of this information. Past performance is not necessarily indicativeof future results.
This material is not intended as an offer or solicitation for thepurchase or sale of any security or other financial instrument.Securities or other financial instruments mentioned in this material arenot suitable for all investors. Any opinions expressed herein are givenin good faith, are subject to change without notice, and are onlycorrect as of the stated date of their issue. The information containedherein does not constitute advice on the tax consequences of making anyparticular investment decision. This material does not take into accountyour particular investment objectives, financial situations or needsand is not intended as a recommendation to you of any particularsecurities, financial instruments or strategies. Before investing, youshould consider whether it is suitable for your particular circumstancesand, as necessary, seek professional advice.
View Caitlin Duffy's post archive >