By David Russell, reporter at OptionMonster.

Traders are betting that Louisiana-Pacific shares will reach $5 by the time option contracts expire in the middle of June.

Volume in the June 5 calls surged to 7,499 Wednesday, more than four times open interest, according to OptionMonster's monitoring systems. At least 4,000 contracts changed hands in a single order broken into several pieces, which suggests a large institutional purchase.

Shares in the debt-heavy lumber company rose 8.5% to $3.45 Thursday and have tripled from their low last month. Louisiana-Pacific will report first-quarter results May 5.

Investors may be seeing value in the stock after the National Association of Homebuilders announced an unexpected improvement in sentiment last week.

Separately, NAHB data showed lumber futures have risen about 30% $180 per 1,000 board feet since the end of January.

At the time of publication, Russell had no positions in any stocks mentioned.

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