Another day, yet another wiseguy option buy. This time around someone “in the know” has just gobbled up more than 4500 July $23 calls in Masco Corporation (MAS). They investor paid 20 cents for those July 23 calls.
Masco Corporation makes and sells home improvement and building products, including faucets, cabinets, architectural coatings and windows Masco also installs insulation for the new home market.
So why is someone betting over $90,000 on these MAS July calls? There doesn’t appear to be any obvious answer. Masco Corporation (MAS) doesn’t report earnings until July 29, 2014, after these call options expire. So this investor is expecting some other catalyst, or has been tipped off by someone as to a material fact regarding MAS.
It could be something as simple as an analyst upgrade that has been leaked before it’s released to the general public. We’ll have to wait and see what unfolds. Sometimes it’s wise to just jump in with the pro’s and ride their coat tails to profit.
Masco Corporation is trading at 21.84 today, up 21 cents so far. The investor is betting that MAS will advance past $23.20 by lat July, or, more likely is expecting a big news release in the next week or so that will drive the options price higher quickly.
Here’s the 5 day chart on Masco Corporation (NYSE: MAS)