One investor is refusing to take a loss in CB Richard Ellis.
For the second time this month, a money-losing short position in the puts has been rolled to a lower strike after the property-management stock saw a big drop. This time, 14,100 September 20 puts were bought for $5.30 against open interest, and an equal number of September 15s were sold for $1.15.
The trade followed a transaction on Aug. 3, when 8,000 August 23 puts were rolled to the August 20 line. Since then, it appears the investor sold more of the August 20s to cover their losses from the bad initial trade.
Today's activity suggests that the investor is adjusting positions yet again, this time shelling out $4.15 in the hope that CBG will close near or above $15 next month.
The stock is down 7.90 percent to $14.80 in late morning trading. It's down 45 percent in the last three months.
Overall option volume is about 10 times greater than average in the name so far today.
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