Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of embattled Harbin Electric (Nasdaq: HRBN) fell 10% briefly today as traders made bets the stock is about to take a fall.

So what: Volume has already hit nearly four times the three-month average with more than an hour left in the trading day, and options are driving the action. Options volume was very high today, and puts are outnumbering calls 3-to-1, showing that traders are looking for protection today.

Now what: The battle between longs and shorts has been going on for months, and today you can score one for the shorts. Supposedly, management is going to buy the company outright, but obviously the market has its doubts about that actually happening, as do I. Maybe I'll miss out on a jump if a buyout comes through, but I'm staying far away from this stock right now.

Interested in more info on Harbin Electric? Add it to your watchlist.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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