Call Spread on VMC on 3/4/2014

Bullish Flag on VMCVulcan Materials Company (VMC) produces and sells construction aggregates, asphalt mix, ready-mixed concrete, and cement primarily in the United States.

The company’s Aggregates segment offers crushed stone, sand and gravel, sand, and other aggregates, as well as related products and services. This segment’s aggregates are used in public- and private-sector construction projects, including highways, airports, water and sewer systems, industrial manufacturing facilities, and residential and nonresidential buildings, as well as railroad track ballast. Its Concrete segment produces and sells ready-mixed concrete in California, Florida, Georgia, Maryland, Texas, Virginia, and the District of Columbia, as well as the Bahamas; and other concrete products, such as blocks, as well as resells purchased building materials for use with ready-mixed concrete and concrete blocks.

The company’s Asphalt Mix segment offers asphalt mix in Arizona, California, and Texas. Its Cement segment provides Portland and masonry cement in bulk and bags to the concrete products industry. This segment also imports and exports cement, clinker, and slag, as well as resells, grinds, blends, bags, or reprocess them. In addition, the Cement segment mines, produces, and sells calcium products for the animal feed, paint, plastics, water treatment, and joint compound industries.

Shares have formed a bullish "flag" following the company's extention of its share repurchase program. The firm also raised its dividend by 400% to 5c per share.

52-Week Trading Range: $45.42 - $69.44

Last Trade:  $68.82

 

Here is the trade

Trade

  • Buy 1 April $70.00 Call at $2.15
  • Sell 1 April $75.00 Call at $0.65
  • For a net debit of $1.50

Profit/Loss Analysis

  • Breakeven at $71.50
  • Maximum profit is $350.00 at strike of $75.00
  • Maximum loss is ($150.00) at strike of $70.00

Closing Summary

  • Sold 1 April $70.00 Call at $0.00
  • Bought 1 April $75.00 Call at $0.00

Position closed on 4/21/2014 at price of $0.00 with a -100.00% loss in 47 days.

Back to Portfolio