The SPDR Homebuilders Trust (XHB) is seeing a second day of relative strength and options activity is picking up as shares move to three-week highs. XHB, which hold shares in 21 different housing companies, is up 72 cents to $12.71 after Toll Brothers (TOL) shook off a disappointing earnings report and moved 7.5 percent higher in morning trading. Meanwhile, XHB options volume is running four times the usual after large blocks of January puts and calls traded. 25,000 of the January 15 calls and 30,000 January 13 puts have now traded, mostly on the offer, as some investors might be buying strangles in anticipation of heightened volatility in the housing sector over the next two months.
Category: All ETFs
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.