Cautious optimism at work in CBRE Group

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CBRE Group has been working higher, and one investor is cautiously optimistic.

optionMONSTER's Depth Charge monitoring system detected the purchase of about 18,000 October 17 puts for $0.60 against open interest of just 11 contracts. The trades followed strong buying in the shares, which suggests the puts are being used to hedge a long position in the stock.

CBG rose 0.44 percent to $18.14 yesterday, and is up 12 percent in the last month. The property-management company, which runs office buildings around the world, reported better-than-expected earnings and revenue on July 31 as strength in North America offset weakness in Europe.

Financial crisis in Greece and Spain have cast a pall over stocks with exposure to the global economy for most of the last year. That trend has started to reverse recently, however, as investors return to sectors such as energy and materials.

Tuesday's investor probably thinks CBG is attractive around its current levels, but wants protection in case of a pullback.

Overall option volume in the name was 34 times greater than average in the session, with puts outnumbering calls by 64 to 1, according to Depth Charge.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Options

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