Put buyer looks for pullback in CBS
Mike Yamamoto | firstname.lastname@example.org
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)