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Is 13 Lucky for Louisiana-Pacific?

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Stocks in this article: LPX

By David Russell of OptionMonster

Somebody thinks 13 is a lucky number for Louisiana Pacific (LPX - Get Report).

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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.

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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.)

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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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