Options Trading News

September 19, 2012  Wed 9:50 AM CT

CBS has been on a scorching run for years, but one trader is betting on a small pullback by the end of the week.

optionMONSTER's Depth Charge system detected the purchase of 2,000 September 37 puts for $0.41 to $0.47 in 4 minutes this morning. Open interest was 606 contracts at the start of the session, so this is new buying.

CBS is fractionally higher today at $36.62, apparently stalling at resistance around $37 this month. The media company is up more than tenfold since trading near $3 in March 2009 at the height of the financial crisis.

The long puts would turn a profit if the stock falls modestly from today's levels by expiration at Friday's close. The volume isn't huge, but overall puts do outnumber calls in the name by nearly 7 to 1 so far. (See our Education section)
Share this article with your friends

Related Stories


Investors keep rolling with CBS

November 23, 2015


Bulls keep riding momentum in CBS

November 12, 2015

The media company has rebounded sharply in the last month, and traders apparently believe that the bullish momentum will continue through early next year.


Investor channels gains in CBS

November 2, 2015

The television and cable company, which has rebounded 18 percent in the last month, reports earnings tomorrow after the market closes.


Investor parlays winnings in CBS

October 29, 2015

The television network was hit hard along with other media companies in recent months but has been climbing off lows from late September.


Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »