Is Freescale headed for a freefall?

Freescale Semiconductor is sitting at all-time highs, and someone is apparently afraid that it’s going to roll over.

optionMONSTER’s Depth Charge monitoring program has detected the purchase of about 7,600 May 24 puts, most of which priced for $1.30. Volume was more than 300 times previous open interest at the strike, which indicates that new positions were initiated.

Puts lock in the price where a stock can be sold, letting investors bet on a drop or hedge a long position. That way they can stay get short or stay long with limited risk.

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