CBS Corporation (CBS) is a media company operating in entertainment, cable networks, publishing and local broadcasting. The stock is currently trading around $60.65 in a 52 week range of $33.04-$60.91. The stock has had a great year adding over 59% to share prices year to date. CBS is set to report their most recent quarterly earnings report today after the close. Historically, CBS is a very strong stock on earnings. The stock has rallied 7 of the past 8 quarters on earnings day with an average move of 2.9%. The stock has also rallied the past 6 consecutive quarters. The stock is also trading well on a chart. Shares of CBS are on a new 52 week high going into the release and are trading well above the Ichimoku Cloud. The slope of the future cloud also indicates that there could be further upside in store for CBS. With strong technical and a solid earnings performance record we believe that CBS sets up well for a long position ahead of earnings.
Trade: Buying the CBS Dec 60-65 Call Spread for $1.75
Risk: $175 per 1 lot
Reward: $325 per 1 lot
Breakeven: $61.75
