Investor rolls long position in CBS (NYSE: CBS)

CBS Corp. (NYSE: CBS) options action out of the gate suggests at least one investor could be expecting further upside in the broadcasting company.

At 9:57 a.m. EST, an investor rolled a long front-month position up and out to the April expiration month. It looks like the investor sold to close 4,000 in-the-money March 14 calls for around 58 cents per contract and bought to open the same number of out-of-the-money April 16 calls for 18 cents per contract to collect a net credit of 40 cents per roll. Even though the investor collected premium on this roll, the action appears to be bullish as the open long position is at a higher strike. This roll-out suggests the investor is calling for CBS shares to close higher than $16.18 at April options expiration in 36 trading days (this represents a 24% rally throughout the later-term).

Current open interest of the March 14 calls is 8,400 contracts, suggesting the investor closed the front-month position and opened the April 16 calls, which are home to current open interest of 1,200 contracts. Implied volatility of the March 14 calls is 42%, and the April 16 calls have an implied volatility of 36% compared to a 30-day historical volatility of 36%.

CBS did not announce any news today, and the company could announce earnings figures sometime around May 6. CBS shares are currently trading down 12 cents to $14.63.