Bears target Louisiana-Pacific at highs

By
A A A

Louisiana-Pacific is at a long-term high, and one investor is bracing against a pullback.

optionMONSTER's Depth Charge tracking program detected the purchase of 2,500 November 13 puts for $1 and $1.05. Volume was more than 12 times open interest at the strike.

Those contracts lock in the price at which investors can sell the lumber company, so they stand to gain value if the shares fall. The buyer is probably an investor looking to protect a long position in the stock, but could also be a speculative bear looking for a decline.

LPX fell 0.30 percent to $13.23 in morning trading, and is up more than 40 percent in the last three months. It's been rallying amid improved sentiment toward the U.S. housing market, although earnings missed estimates the last time results came out on July 31.

The stock is now back to the same level where it peaked in early 2010, which could make some chart watchers think it will now pause or surrender some of its recent gains.

Overall option volume is triple the daily average so far today, with puts outnumbering calls by more than 800 to 1.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: LPX

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

100%

Most Active by Volume

74,282,785
  • $10.84 ▲ 11.64%
60,794,128
  • $17.12 ▲ 0.71%
55,628,662
  • $35.59 ▼ 1.00%
55,306,290
  • $116.47 ▲ 0.14%
55,118,241
  • $39.75 ▼ 0.43%
53,597,648
  • $9.41 ▲ 8.29%
41,889,990
  • $47.98 ▼ 1.48%
35,692,375
  • $97.34 ▼ 0.57%
As of 11/21/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com