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CBS Shares Fall, So Why are Traders Still Bullish?

Shares of CBS have fallen 16 percent in the last week, but option traders were bullish on the network yesterday.

CBS was down 5.6 percent, closing at $11.74. A week ago it peaked above $14, putting in a new 52-week high. The stock has put in an impressive from the March low near $3 but still must climb by some 200 percent to get back to the high set in July 2007.

OptionMonster's proprietary tracking systemspicked up on the purchase of more than 5,000 of the November 11 calls, almost all of them traded at the same second across various exchanges for $1.15. These calls are in the money and, as such, need CBS only to return to Tuesday's levels or even yesterday's highs to be profitable.

The stock would need to rise at least 3.5 percent by expiration for the calls to turn a profit.

The company is scheduled to release its next earnings report on Nov. 5.

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CBS Competes With:

Time Warner

Walt Disney

GE (Parent company of NBC, CNBC and CNBC.com)

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Chris McKhann is an analyst and writer for OptionMonster.

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