Option Bulls Scoop Up Eagle Materials Call Options

EXP – Eagle Materials Inc. – Investors are scooping up call options on the manufacturer of gypsum wallboard and cement ahead of the firm’s second-quarter earnings report scheduled for release ahead of the opening bell on Thursday. Eagle Materials’ shares rallied 2.00% during afternoon trading to $26.59, but earlier increased as much as 4.4% to secure an intraday high of $27.21. Options players expecting the cement maker’s shares to continue to appreciate ahead of August expiration purchased approximately 2,000 calls at the August $30 strike for an average premium of $0.20 per contract. Call buyers are prepared to make money as long as the price of the underlying stock surges 13.6% to trade above the effective breakeven price of $30.20 by expiration day next month.

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

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