Volume Spike Investor

It’s been a while since we have seen the US homebuilder sector have stock options among the most active contracts at the CBOE.  It’s usually financial stocks that traders have been using.  Looking at Toll Brothers (NYSE: TOL) and Lennar (NYSE: LEN) says it all.  But today we are seeing the following trades out there as of 11:08 AM EST with open interest listed:
Tick   Option/Strike            Volume   OpInt
TOL DEC08 $30.00 CALLS    5,000   1,312
LEN AUG08 $12.50 CALLS    8,000    12,911
TOL DEC08 $15.00 PUTS     10,000   803
TOL DEC08 $20.00 PUTS    5,000      443
TOL SEP08 $12.50 PUTS     2,036      2,384

After the poor earnings reports (with losses) and with foreclosures so strong it looks like someone is trying to at least hope for some light at the end of the tunnel.  Sometimes that light is really an end of the tunnel, but sometimes that light is really just a freight train bearing down your way.

Jon Ogg
July 25, 2008