CBS has pulled back after a rally earlier in the month, and now traders are looking for another pop to the upside.
optionMONSTER's Heat Seeker tracking system detected heavy buying of the July 15 calls, mostly for $0.30 to $0.35. Volume surged past 11,810 contracts, about twice the open interest when the session began.
The media stock appears to be forming a bullish "flag" chart pattern after bottoming out at $13.10 on June 8. It swung higher and lower in yesterday's session, ultimately ending up 0.7 percent at $14.47.
The call buying occurred after CBS rebounded from a late-morning loss. After that, the shares climbed steadily into the close.
The company reported earnings inline with analysts' forecasts on May 5 after benefiting from a rebound in advertising. The next release is scheduled for after the market close on Aug. 3.
Overall options volume in CBS was eight times greater than average yesterday, with calls accounting for a bullish 89 percent of the activity.
(Chart courtesy of tradeMONSTER)
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