A trader is looking for lower volatility in CBS as the media company hovers near its highest level in more than a decade..
optionMONSTER systems detected the sale of 3,000 December 50 puts for $2.07 this morning. The volume was more than 3 times the strike's previous open interest and already matches its full-session average for the last month.
Seconds later, 93,000 shares of CBS were bought for $53.41. Combined with the puts, this creates an overall strategy that is delta-neutral and focused on lower volatility than that implied by the options rather than a specific direction in the share price. (See our Education section)
CBS is up 0.41 percent to $53.34 this morning. The stock hit a 13-year high of $55.58 at the start of the month after strong quarterly results and bounced off support near $50 last week.
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