Bullish – CBS $ 50.64 – Communication Services
On Friday’s Options Action, the crew analyzed the performance of CBS. CBS sold off heavily during last year’s December selloff but rebounded well this year. Coupled with cheap valuation and a bullish reaction to neutral earnings suggests CBS will likely recover going forward. Expecting CBS to trade higher, Michael Khouw suggests buying a June 50/60 Call Vertical for a $2.80 Debit. As of Friday’s close, these calls were trading at a $2.95 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: CBS Options Action Video