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Trader sticks with CB Richard Ellis

CB Richard Ellis has been a nightmare for one investor, and now they're hoping the tide has turned.

optionMONSTER's monitoring programs detected the sale of 14,000 October 15 puts on the property-management company for $1. An equal number of September 15s was bought at the same time against open interest for $0.15.

The transaction seems to be the latest appears to be the latest chapter in an on-going saga that began in July or earlier when an investor sold puts on property-management company. At the time, the trader was betting that the shares would hold their ground, but they cratered instead.

The trader has been rolling the position forward in time since then, hoping to claw back and break even. Friday's transaction earned an additional $0.85 of income and will extend the position for another month. The September contracts that were bought back were initially sold on Aug. 18 .

CBG fell 0.85 percent to $15.14 on Friday and has lost more than one-third of its value in the last three months. It's been hurt by poor financial results and weakness in the broader market.

The stock is back to a key support level from last summer, and selling puts reflects a belief that further downside will be limited. (See our Education section)

The trade pushed total option volume in the stock to 10 times the average amount.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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