(The following is an example of notable trading cited on optionMONSTER's InsideOptions Pro service yesterday.)
Housing has been strong, and now the bulls are targeting USG for the second week in a row.
optionMONSTER's Heat Seeker tracking program showed that 3,800 August 27 calls were bought yesterday, most of which fetched $1.75. Open interest stood at just 289 contracts when the session began, so new money was clearly put to work.
The drywall manufacturer also saw bullish call buying in the July 29 strike a little more than a week earlier.
Long calls lock in the price where investors can buy a stock, allowing them to catch a rally with much less capital and risk. Their cheap cost can also result in significant leverage on a percentage basis if shares move higher. (See our Education section)
USG rose 0.98 percent to $27.79 yesterday. Shares have traded in a tight range amid their 50-, 100-, and 200-day moving averages. Other housing-related stocks, especially homebuilders PulteGroup and D.R. Horton , have seen bullish activity as well recently.
USG's next earnings is estimated for July 23, before yesterday's calls expire. Total option volume in the name was 7 times greater than average in the session, with calls outnumbering puts by 70 to 1.
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