Bearish James Hardie Bet Traded Before Deal News Soars 177%

  • An opening block of May A$43 puts changed hands on Friday
  • The trade gained in value as the shares tumbled Monday

A block of bearish James Hardie Industries Plc options changed hands before shares of the Australian building-products producer sank on news that it would buy Chicago-based AZEK Co.

A blockBloomberg Terminal of 3,000 James Hardie A$43 puts expiring in May traded late Friday for A$14 million in notional value, data compiled by Bloomberg show. The position was new, with an exercise price 8.1% below that day’s closing share level, and represented about one-fifth of the 20-day average stock volume.