USG trade positions for limited upside

Shares of building-materials maker USG are pushing back toward their highs, but one trader sees a limit to the gains.

USG is up 1.23 percent to trade at $18.12. It bounced off support at $13 at the beginning of the month, a level that has held up since the start of the year despite being tested extensively.

optionMONSTER's systems show that a trader sold two blocks of 3,000 August 19 calls at the same time for $1.35 and $1.30. The previous open interest was just 813 contracts, so this is a new position.

These options were very likely sold against long shares as a covered call , especially given how close the contracts are to the stock price. USG posted a 52-week closing high of exactly $19 on March 21. (See our Education section)

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