The bulls are throwing everything they've got at drywall maker
Just minutes after the opening bell today, optionMONSTER's Heat
Seeker monitoring program detected the
of 3,000 August 27
calls for $2.90. Volume was more than 11 times previous open
interest at the strike, indicating that new money was put to work
on the long side.
Those contracts had a
of 0.64, meaning they will closely track movements in the stock
price. USG continued higher, and those calls have already inflated
to $3.40, which shows the kind of
that can be achieved with options.
Now the bulls are coming back for even more. This time, the Heat
Seeker shows 3,000 June 31 calls bought for $0.45, 2,500 June 30
calls bought for $0.80, and 1,000 June 26 puts sold for
$0.30. It cost them $305,000 to open this position, which
will perform similarly to owning more than 180,000 shares.
USG is up 3.34 percent to $28.74 in afternoon trading. Based on its
current price, the three-way option strategy provides
at less than one-tenth of the stock price.
Companies tied to housing have been among the strongest in the last
year as the U.S. residential real-estate market recovers from the
is ripping today after the homebuilder beat estimates, while
and other home-improvement retailers have been advancing as well.
market scanner for a breakdown of
USG, which also makes ceiling tiles and sealers, spent more than a
week building support at its 100-day moving average before today's
move. Overall option volume in the name is 9 times greater than
average so far today, with calls accounting for more than 85
percent of the total.
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