Credit: Shutterstock photoCBS has been pulling back, and traders think it's done going down.
optionMONSTER's tracking programs detected the sale of almost 6,400 April 60 puts, most of which priced for $0.90. Volume was almost 20 times previous open interest at the strike, indicating that new positions were initiated.
The investor will keep the credit as profit if the media stock remains above $60 through expiration. Below it they will have to get long shares. It makes sense to write those contracts now because they will lose value at an accelerating pace over the next three weeks. (See our Education section.)
CBS fell 0.79 percent to $61.47, and has lost more than 7 percent of its value in the last week. Shares hit an all-time high earlier this month, and have climbed steadily since late 2012 thanks to a strong advertising market.
Thursday's put seller probably likes the stock and would be willing to get long for $60. It's also a level where CBS encountered resistance in November, which could make him or her expect it to provide support.
Total option volume was quadruple the daily average.
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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.
