Learn the trade here. Make it on tradeMONSTER

Options Trading News

April 11, 2014  Fri 5:16 AM CT

CBS: SEE CHART GET CHAIN FIND STRATEGIES
Traders are looking for CBS to regain the upward momentum it lost earlier this year.

optionMONSTER's Heat Seeker tracking program detected the purchase of about 10,000 May 62.50 calls yesterday, most of which priced for $1.65 to $1.75. The volume was almost triple the previous open interest in the strike, indicating that new positions were initiated.

Long calls lock in the price where investors can buy a stock, letting them cheaply position for a rally. The contracts can generate significant upside leverage but can expire worthless if the stock remains below $62.50. (See our Education section)

CBS fell 3.82 percent to $59.98 yesterday, following a 3 percent pop just one session earlier. The media name has been a steady winner for the last two years, and yesterday's call buyers are looking for stock to resume its uptrend after pulling back since mid-March. The company's next earnings report is scheduled for May 8.

Total option volume in CBS was triple its daily average for the last month, with calls outnumbering puts by more than 4 to 1.

(A version of this post appeared on InsideOptions Pro yesterday.)
Share this article with your friends


Related Stories

CBS

What's behind huge CBS call sale

November 3, 2014

Our systems have detected the sale of 59,298 December calls in the media company, but it is almost certainly tied to stock as part of a covered-call trade.

Premium Services

Webinar Playback

eSignal "Back in Black": Multi-Speaker Free Webinar

Education & Strategy

Some things aren't what they seem

As we scan the Heat Seeker, Depth Charge, and other option-tracking systems, we sometimes see heavy activity in calls and...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER