Masco bulls looking for more gains

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The bulls are still piling into Masco, which has been going straight up for more than a month.

optionMONSTER's Heat Seeker monitoring program detected the purchase of almost 3,700 October 18 calls for $0.10 and $0.15 against open interest of just 4 contracts. Those long calls are far out of the money but could generate significant leverage if the maker of building materials continues to rally. They will become worthless if it doesn't. (See our Education section)

MAS is up 2.67 percent to $15.74 this afternoon and more than 30 percent since the beginning of August. The maker of building materials such as cabinets and faucets has been climbing along with housing stocks as real-estate sentiment brightens. Earlier today it touched $16.21, the stock's highest price since April 2010.

Earnings have remained weak for the company, but enthusiasm toward the broader industry has carried the shares higher. Yesterday there was also bullish call buying in lumber stock Louisiana-Pacific.

Overall option volume in MAS is 9 times greater than average so far today, with calls outnumbering puts by 6 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: MAS

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