By David Russell of OptionMonster
OptionMonster's tracking systems detected the purchase of 1,600 November 13 calls for $1.20 to $1.30. Volume eclipsed previous open interest of just 53 contracts, which indicates new money was put to work on the long side.
Calls lock in the price where investors can buy the lumber stock, letting them cheaply position for a rally. They also stand to enjoy significant leverage if the stock pushes higher. (See our education section.)
Louisiana-Pacific rose 2.61% to $13.38 on Friday but has lost more than one-quarter of its value so far this year. It's down to its lowest price since late 2012, but has attempted hold $13 this month.
Total option volume was almost 6 times greater than average, with calls outnumbering puts by more than 10 to 1.
(A version of this post appeared on InsideOptions Pro yesterday.)
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV