A large trader is looking for building-materials company USG to break through a key level in the next six weeks.
optionMONSTER's Heat Seeker system detected the purchase of 5,000 November 27 calls in one print for $2.30 in late-morning trading. This is clearly a new position, as the strike's open interest was just 810 contracts before the trade appeared.
These long calls , which lock in the price where the stock can be bought, are betting that USG will rally above $29.30 in the next six weeks. But these contracts, which will track the share price closely because they are in the money , will quickly lose value if the stock doesn't climb soon. (See our Education section)
USG, which makes drywall and other construction materials, is down 1.51 percent to $27.98 in midday trading. The stock made a strong run in September after starting the month under $24, but it has hit resistance repeatedly around the $29 level.
Total option volume in USG tops 6,100 contracts today, already triple its full-session average for the last month. Only 164 puts have changed hands so far, a reflection of the day's bullish sentiment.
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