(The following is an example of notable trading cited on optionMONSTER's InsideOptions Pro service yesterday.)
The bulls are piling into USG with shares at a key level.
optionMONSTER's Heat Seeker shows that nearly 3,000 January 30 calls were bought for $0.75 to $0.90 yesterday. Volume was more than double the strike's previous open interest of 1,257 contracts, indicating that new positions were initiated.
Long calls lock in the price where investors can buy a stock, letting them profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis. (See our Education section)
USG rose 2.82 percent to $26.62 yesterday. The wall-board maker is down more than 14 percent in the last month but is trying to hold long-term support at the $26 level. The company's next earnings report is scheduled for Oct. 22.
Total option volume in the name was more than 8 times its daily average for the last month. Overall calls outnumbered puts by 11.5 to 1.
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