CBRE Group is back above $24, and one big investor defended that
key level yesterday.
optionMONSTER's tracking programs detected the sale of about 6,700
May 24 puts for $0.80 against previous open interest of just 99
contracts. The transaction dominated the session's activity in the
manager of commercial real estate.
is now obligated to buy CBG shares at the strike price if they
close below it on expiration. But if they remain above $24, the
contracts will expire worthless and the $0.80 credit will be kept
as profit. (See our
CBG rose 0.79 percent to $24.31 yesterday. It's is up 22 percent so
far this year, with much of that gain coming after a strong
earnings report in February.
The company doesn't appear to have announced the date of the
first-quarter release, but last year it occurred on April 24. If it
follows that schedule this year, it would occur during the May
expiration, meaning that the put sale would be a bet on strong
The $24 level is also important because it's where the stock peaked
in May 2008 before crashing along with the rest of the market. That
could make some chart watchers think that it will now provide
Total option volume was 47 times greater than average in the
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.