Market News

October 12, 2016  Wed 11:23 AM CT

Weyerhaeuser is drawing upside option activity ahead of quarterly results at the end of this month.

optionMONSTER's monitoring system detected the purchase of 3,300 October 31.50 calls for $0.20 to $0.40 today. Volume was more than 24 times the open interest in the strike, showing that these are new positions.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

WY is up 1.87 percent to $31.33 in midday trading but is down 4 percent in the last three months. The lumber company's next earnings report is scheduled for pre-market hours on Oct. 28.

Overall option volume in the name is twice its daily average so far today. Calls outnumber puts by a bullish 18-to-1 ratio.

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