Bears Busy as Builders FirstSource, Inc. (BLDR) Takes Breather

Builders FirstSource, Inc. (BLDR) has cooled off after a recent explosion

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Published on Apr 15, 2015 at 11:36 AM
Updated on Apr 20, 2015 at 5:32 PM

Builders FirstSource, Inc. (NASDAQ:BLDR) has made some sharp moves this week, and that trend is continuing today. However, unlike Monday and Tuesday, the shares are lower around midday -- down 5.2% at $12.89. This has caught the attention of option bears, who are rolling the dice on a steeper pullback through week's end.

In BLDR's options pits, puts are currently crossing at 13 times what's expected at this point in the session. Possible buy-to-open activity is detected at the April 12.50 put -- in which case, the buyers expect shares of the construction firm to descend south of the strike by Friday's close, when the front-month contracts expire.

Taking a step back, put open interest has held a decisive advantage over call open interest, among BLDR options expiring within three months. Specifically, the equity's Schaeffer's put/call open interest ratio (SOIR) sits at an annual high of 1.28.

Meanwhile, Builders FirstSource, Inc. (NASDAQ:BLDR) has been a beast on the charts. Since the start of the year, the shares have added roughly 88%. Even more remarkable, BLDR has outperformed the S&P 500 Index (SPX) by a mind-bending 123.4 percentage points over the past month.

BLDR put call open interest ratio since January


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