A trader is looking to leverage a move in CBS into early next year.
optionMONSTER's Heat Seeker tracking system detected the purchase of 20,000 March 28 calls for $1.50 and the sale of an equal number of March 23 puts for $1.50. Volume was more than 45 times open interest in both strikes.
The trade cost nothing to open and is similar to owning shares in the media company. If CBS rises, the calls will appreciate and the short puts will lose value, but the opposite will occur if the stock falls.
CBS rose 5.77 percent to $26.04 yesterday. It roughly doubled between mid-2010 and mid-2011, only to crater along with the rest of the market in the summer. Shares then bounced at a long-term support level of $18 and are up 28 percent in the last two months.
The company, which owns television stations, radio broadcasters, and billboards, has mostly enjoyed strong results amid a rebound in ad spending. Yesterday there was also call buying in advertising giant Interpublic Group .
Overall option volume in CBS was 15 times greater than average in the session, according to the Heat Seeker.
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