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Nervous strategy on Texas Industries

Texas Industries is trying to bounce, but one investor is still nervous about a drop.

optionMONSTER's Depth Charge tracking system detected the purchase of 1,300 September 30 puts on the Dallas-based provider of cement and aggregates such as crushed rock. All of the contracts were bought for $1.10.

TXI is up 6.32 percent to $33.48 in midday trading but has lost 18 percent of its value in the last month. The company has struggled against weak demand for construction products, though it's attempting to rebound from the same $30 level that was support 11 months ago.

Short interest in the name also represented 33 percent of the float at the end of last month, which could potentially draw buyers to the stock.

TXI was higher as the puts traded, which suggests that the contracts may have been purchased as protection on a long position in the stock rather than as a pure downside play. (See our Education section)

Overall option volume in the name is almost twice the average amount so far today, with puts outnumbering calls by more than 80 to 1.

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

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

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