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Bullish play stays tuned to CBS
CBS has been a prime-time pick of the bulls in the last two
months, and one investor is staying tuned for more upside.
optionMONSTER's Heat Seeker tracking system detected the purchase of 4,000 November 20 calls for $0.25. At the same time an existing position of the same size in the October 17 contracts was closed for $1.10, resulting in a net credit on the trade of $0.85.
Rolling the calls to the higher strike allowed the investor to recover most of their money at risk in the position while maintaining exposure to further upside if the media stock continues to push higher.
CBS is up 0.45 percent to $17.98 in afternoon trading and has gained 29 percent in the last two months. It's been benefiting from a rebound in the advertising market as corporations deploy record cash balances to attract penny-pinching consumers.
The last earnings report from CBS on Aug. 3 was better than expected, and management forecast strong growth, especially with elections approaching on Nov. 2. The next release is scheduled for after the bell on Nov. 4.
Overall option volume in the stock is 4 times greater than average today, with calls outnumbering puts by more than 2 to 1.
(Chart courtesy of tradeMONSTER)