Shares of USG Corporation (USG) are trading higher on the session following the release of the company?s Q3 earnings this morning. The stock is up 6.34%, to $24.17. This marks a massive turnaround, as shares were trading off nearly 8% premarket, at $20.89.
USG reported a Q3 EPS loss of $0.28 on revenues of $828 million; the Street was looking ($0.10) per share on revenues of $867 million.
One trader is taking advantage of the decreased implied volatility in USG to buy protection today. A short while ago, the November $23.00 put was purchased 2,349 times, on the offer, for $1.45; volume has since risen to 3,837 contracts. Open interest is only 782, indicating new positioning.
Overall put volume is running at 3x normal volume with 60% of all puts traded being purchases on the offer.
30-day implied vol is off 6.6% today to 51.93%; 10-day realized vol is registering 45.44%.
USG Corporation, through its subsidiaries, is a manufacturer and distributor of building materials. The company produces a range of products for use in new residential, new nonresidential, and residential and nonresidential repair and remodel construction, as well as products used in certain industrial processes.