Vulcan Materials trading volume quintupled average call daily volume, as traders bet the Florida producer of construction aggregates would benefit from federal construction spending.
More than 2,000 shares changed hands in the April 35, 40, 45, and 50 call strikes, as VMC shares lifted as high as $43.95. Year to date, the company had been down 39 percent.
The past 10 days also has seen steady put selling.
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VMC is the largest producer of construction aggregates — crushed stone, gravel, and sand — in the U.S. Given the volume of public works projects in the Obama administration's stimulus package, traders appear to believe the company will inevitably benefit.
Also today, a North Carolina paper reported the company is recalling 30 of 38 furloughed workers.
Disclosure:
I have a position in VMC.
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OptionMonster Education Section:
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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.
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