Puts Spike in ADCT

ADC Telecommunications (NASDAQ: ADCT) has been rallying higher for the past two months and has fulfilled the reverse head and shoulders chart pattern that began in October of last year. The stock is officially in uncharted waters now and one trader is betting that bulls will be hanging up the phone. The April $7.50 puts were purchased on the offer 2,000 times for $0.35 today; open interest on that line is less than 300 contracts suggesting new, bearish positioning.

ADC Telecommunications is trading up small on the day to $7.45. The company recently announced a new coverage and capacity expansion that includes 3G and 4G compatibility called InterReach Spectrum(TM). ADCT claims it is “the world's first active distributed antenna system (DAS) that delivers up to eight mobile frequencies in a single system.”