CBRE traders look for earnings pop

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Traders are piling into CBRE Group before tonight's earnings release.

optionMONSTER's Heat Seeker monitoring system shows a flurry of activity in the November 25 calls, with buyers initially paying $0.40. Premiums quickly rose, and the largest blocks priced for $0.45 and $0.50. More than 7,000 contracts traded overall, dwarfing previous open interest of 423.

Calls lock in the price where shares can be purchased in the company, which provides commercial real-estate services. Investors use them to position cheaply for a rally, preventing them from missing a big move to the upside. See our Education section for more.

CBG rose 4.16 percent to $24.39 in morning trading. It ripped higher in late 2012 and early 2013, but has been consolidating since. While earnings have missed expectations in recent quarters, revenue has been strong and management is looking for better margins.

Overall option volume is 31 times greater than average so far in the session, according to Heat Seeker. Calls account for more than 95 percent of the total.



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

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: CBG

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