Stronger housing numbers should yield more demand for sheetrock, durock and fiberock, so perhaps that has something to do with the action we’re seeing in building materials manufacturer USG Corp. (USG). But USG is not just up a bit today, it is up on strong volume and very unusual options trading volume.
We won’t try to tie this in with a Warren Buffett angle, although Mr. Buffett is deeply entrenched in the stock and debt through Berkshire Hathaway (BRK.B).
The USG May 25 Calls (USG 100522C00025000) saw 2,813 contracts trade versus a prior open interest of 919 contracts, while the USG May 22.50 Puts (USG 100522P00022500) have seen 1,630 contracts trade versus an open interest of 358 contracts.
The USG June 25 Calls (USG 100619C00025000) saw 12,908 contracts trade versus a prior open interest of 324 contracts, and the USG June 27.50 Calls (USG 100619C00027500) saw 5,924 contracts trade versus a prior open interest of 19 contracts. The USG June 22.50 Puts (USG 100619P00022500) have seen 1,893 contracts trade versus an open interest of 277 contracts.
The USG Aug 25 Calls (USG 100821C00025000) saw 3,053 contracts trade versus a prior open interest of 2,023 contracts.
USG shares are up 6.8% at $24.08 on 4.12 million shares. The company reported earning this week, but that was three days ago.
Shares hit a new 52-week high of $24.75. This is highly unusual volume and even more active than its earnings day trading.
It is Friday, and you know what that means in a bull market: Rumor Friday precedes Merger Monday.
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