Cornerstone Building (CNR) small-cap with 1000 January $7.50 calls bought yesterday for $2.15 and still has 2,000 March $7.50 calls in open interest from August. The $1.18B company has traded well in 2020 and up 60% since June. CNR is forming a weekly flag under $10 with a breakout targeting $12.50 but lots of upside potential as it works out of a two-year base. CNR shares traded up to $22 in 2018. CNR is the largest manufacturer of exterior products for housing including siding, gutters, moldings, and windows. Their primary business is windows (40%) while the remaining areas are fairly fragmented with no business more than 19%. They’ve seen six quarters of EBITDA expansion in their biggest areas and seeing end-market demand strong due to homebuilding construction as well as remodel demand. CNR continues to expand their customer base and strong channel mix among distributors, general contractors, and big box retailers. Sidoti upgraded shares to Buy in September citing increased confidence in Cornerstone’s execution given the likely extended residential construction cycle, paired with cost-saving initiatives, significantly increasing the company’s ability to manage a multi-year debt paydown and showcase its earnings power. CNR has seen a lot of insider buying in 2020 including the CEO adding over $1.5M in March and May.