Shares of CBRE Group (CBG) are trading higher on the session by 0.78%, at $18.20. The stock has been rallying strongly over the past five weeks, but one institutional sized options trader is looking to protect their position in the name today.
A short while ago, the October $17 put was purchased 17,948 times, on the offer, for $0.60. At 18,005 contracts, today?s volume vastly exceeds current open interest of 11 contracts; this indicates fresh positioning on the name.
While the trade would be utterly bearish in isolation, similar large blocks of puts have been purchased in the name all year long, suggesting that a long stock holder is buying protection on CBG. With implied volatility down significantly since the beginning of the year, 29% versus 44%, the puts are relatively cheap.
Additionally historical volatility is not down nearly as much over the same period, at 43% from 51%.
CBRE Group, Inc., formerly CB Richard Ellis Group, Inc., is a holding company that conducts all of its operations through its indirect subsidiaries. The Company is a commercial real estate services firm.?