OptionsHouse

Options Trading News

September 19, 2012  Wed 9:50 AM CT

CBS: SEE CHART GET CHAIN FIND STRATEGIES
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


Invest Like a Monster - San Antonio: October 9-10

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Real vs. Synthetic

We now know that there are two ways of creating a call position, a put position, and a stock position. We can simply use the actual real security or we can recreate it synthetically. We can create these positions in both long and short forms and this ability sets up an interesting scenario--an arbitrage!

View more education articles »