DR Horton (DHI) adds 67 cents to $11.96 after today’s Housing Starts data showed an increase to 629,000 in June, which was up from 549,000 the month before and considerably better than the 570,000 that was expected. In DHI options action, one investor seized the day’s strength to sell 18000 Aug 12 calls at 37 cents per contract. 19,560 now traded against 13,041 in open interest. The Aug 12 call on the homebuilder is nearly at-the-money with a delta of .49. Interestingly, a block of 30,800 Aug 7 puts on Pulte Group was sold at 29 cents per contract at about the same times as the DHI call write. Maybe this is part of a pairs trade — selling at-the-money calls on DHI and at-the-money puts on PHM.