Louisiana-Pacific (NYSE:LPX) makes OSB and other materials used in construction. At a price just above $18 it has a PE of 10.8, with the hope that springs eternal, that housing will continue its recovery.
The stock has a definite seasonality to it, it goes up about 10% from January to early May, then starts to give back.
With shares at $18.31, I was able to buy the May 2014 15/18 vertical call spread for 2.08. The thinking was, with 10% seasonality, the odds are good that LPX won't be below $18 at expiration. If it is, the PE at that point suggests that owning the shares won't do any lasting harm. I could sell another set of calls at the 18 strike and continue that way if I wind up owning the shares.
It returns 132% annualized if shares are above $18 at the May expiration, which I think is the most likely outcome.
Disclosure: I am long LPX.