Option Trade 
CBS Corporation (NYSE:CBS) Calls 
Tuesday, November 03, 2015

**OPTION TRADE: Buy the CBS Mar 2016 50.000 call (CBS160318C00050000) at approximately $2.25. Place a pre-determined sell at $4.50.

Note: No protective stop losses added -- but if you wish to do so make it $0.90.

by Ian Harvey

November 03, 2015

CBS Corporation (NYSE: CBS), a mass media company, is scheduled to release third quarter earnings after the market closes today, Tuesday 3rd November. CBS is expected to report adjusted per-share earnings of 81 cents, according to analysts, up 12.16% or $0.09 from last year’s $0.74 per share. In the year-earlier period CBS posted per-share earnings of 74 cents. Also, CBS is projected to report revenue of $3.27 billion. For the same quarter a year earlier, CBS posted revenue of $3.37 billion.

The company has surpassed the Consensus Estimates in all of the last four quarters, with an average positive earnings surprise of 2%.

Shares of CBS Corporation rose by 4.56% in the past week and 15.43% for the last 4 weeks. In the past week, the shares have outperformed the S&P 500 by 4.35% and the outperformance increases to 8.33% for the last 4 weeks.

During the second-quarter earnings release, management maintained a positive tone regarding the future given several new prime time shows as well as returning hit series along with NFL on Thursdays & Sundays and Super Bowl 50. Management also anticipated that ad revenues are likely to get a boost from political spending.

Historically, CBS has been trading with a 52 week low of 38.51 and a 52 week of high 63.95. Technical indicators show a 50 day moving average of 42.73.

Additionally, CBS currently has a market capitalization of 22.43B. CBS reported earnings before interest, taxes, debt and amortization (EBITDA) as 3.07B.

Out of 22 analysts covering CBS Corp , 17 rate it “Buy” or “Strong Buy”, 0 “Sell”, while 5 “Hold”.

These analysts have put a $62.00 one year average price target on the stock, with the most bullish analyst on the street having a lofty price target of $67.

Also, recently CBS has been given a “BBB” credit rating by analysts at Morningstar. The research firm’s “BBB” rating suggests that the company is a moderate default risk. They also gave their stock a four star rating.

Harvey’s Options Volatility Indicator

Therefore, based on the facts above, and Harvey’s Options Volatility Indicator, the following option trade is recommended…..

**OPTION TRADE: Buy the CBS Mar 2016 50.000 call (CBS160318C00050000) at approximately $2.25. Place a pre-determined sell at $4.50.

Note: No protective stop losses added -- but if you wish to do so make it $0.90.

”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.



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