Buy to open the December 16, 2016 call on Acuity Brands (NYSE: AYI) with a strike price of $240 at $2.80 or lower. (Symbol AYI161216C240)

Acuity Brands is a provider of lighting and heating solutions and is a pure play on the explosive demand for intelligent building maintenance solutions. I added the stock to the Profit Catalyst portfolio in August. Acuity is a larger cap stock than most in our portfolio and the high absolute price of the stock requires a large dollar investment.

The recent drop in the stock offers subscribers a chance to get in on Acuity with a smaller upfront investment.

The stock is down 10% since supplier Cree (NSDQ: CREE) complained of lower LED lighting prices on its Oct. 18 earnings call. However Cree is primarily a supplier to Acuity, not a competitor and lower pricing for components boosts Acuity’s profits.

Acuity missed its fourth quarter estimate due to a manufacturing transition that cost the company $25 million in sales and increased expenses by $2 million. However, management assured investors on its call that earnings growth would accelerate in 2017 (year ending August 2017).

The drop in the stock offers subscribers a great opportunity to buy the December 240 calls. Although the company’s November quarter will not be released until early January, I think the stock will start to incorporate stronger numbers before the December expiration.

The stock is bouncing today due to an upgrade by Wells Fargo. I think subscribers can be patient and buy the calls over the course of the next two weeks using the $2.80 limit price.