CBS has been an explosive stock, and a pullback is the last
thing on the minds of some investors.
optionMONSTER's tracking programs detected the sale of about 5,300
May 45 puts for $0.95. Volume was more than 11 times open interest
at the strike, indicating that a new position was initiated.
If CBS remains above $45 through expiration, the
puts sold short
will expire worthless and they'll keep the $0.95 as profit. Below
that level they'll have to buy the media stock, but including the
credit earned their entry price would be $44.05. (See our
section for more on when it makes sense to sell puts.)
CBS rose 1.11 percent to $46.26, and is up 22 percent so far this
year. Earnings have mostly been strong, but the real catalyst
recently was a plan to spin off its billboard properties into a
real-estate investment trust. The next quarterly report is
scheduled for May 1 after the puts sold today expire.
The trade dominates activity in CBS today, according for more than
half of the total option volume.
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.
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