Looking At Builders FirstSource's Recent Unusual Options Activity

Investors with a lot of money to spend have taken a bullish stance on Builders FirstSource BLDR.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with BLDR, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 10 uncommon options trades for Builders FirstSource.

This isn't normal.

The overall sentiment of these big-money traders is split between 60% bullish and 10%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $655,490, and 5 are calls, for a total amount of $612,020.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $135.0 to $195.0 for Builders FirstSource during the past quarter.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Builders FirstSource options trades today is 280.12 with a total volume of 1,053.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Builders FirstSource's big money trades within a strike price range of $135.0 to $195.0 over the last 30 days.

Builders FirstSource Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
BLDR CALL SWEEP BULLISH 08/16/24 $32.5 $31.6 $32.5 $135.00 $325.0K 4 1
BLDR PUT TRADE BEARISH 08/16/24 $14.3 $12.4 $13.9 $165.00 $322.4K 261 0
BLDR PUT TRADE BULLISH 05/17/24 $22.1 $19.5 $20.46 $180.00 $204.6K 596 2
BLDR CALL SWEEP NEUTRAL 08/16/24 $34.1 $32.8 $33.41 $135.00 $166.9K 4 101
BLDR PUT TRADE NEUTRAL 06/21/24 $2.85 $2.6 $2.73 $150.00 $54.6K 295 233

About Builders FirstSource

Builders FirstSource Inc is a manufacturer and supplier of building materials. The company offers structural and related building products such as factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, and engineered wood. The products can be designed for each home individually and are installed by Builders FirstSource. The company's construction-related services include professional installation, turn-key framing, and shell construction. Builders FirstSource's customers range from large production builders to small custom homebuilders.

Following our analysis of the options activities associated with Builders FirstSource, we pivot to a closer look at the company's own performance.

Where Is Builders FirstSource Standing Right Now?

  • Currently trading with a volume of 1,671,627, the BLDR's price is up by 0.71%, now at $163.77.
  • RSI readings suggest the stock is currently may be approaching oversold.
  • Anticipated earnings release is in 84 days.

Professional Analyst Ratings for Builders FirstSource

In the last month, 3 experts released ratings on this stock with an average target price of $204.66666666666666.

  • An analyst from Baird persists with their Neutral rating on Builders FirstSource, maintaining a target price of $197.
  • Maintaining their stance, an analyst from Truist Securities continues to hold a Hold rating for Builders FirstSource, targeting a price of $180.
  • Consistent in their evaluation, an analyst from Jefferies keeps a Buy rating on Builders FirstSource with a target price of $237.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Builders FirstSource with Benzinga Pro for real-time alerts.

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Posted In: OptionsMarketsBZI-UOA
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