Home Construction
Toll Brothers (TOL) $21.35 -1.61%
Homebuilders have been under pressure today on disappointing jobs data, an earnings miss from KB Homes (KBH) and a negative report (link: http://www.lenn-ron.com/docs/FDI-Lennar_Final.pdf) on Lennar posted on the Fraud Discovery Institute web site. The day’s news motivated aggressive put activity in a number of names including Toll Brothers (TOL, chart, volatility). Shares are down 36 [...]
Lennar Corp (LEN) $9.36 -18.04%
Lennar (LEN, chart, volatility) is down $2.08 to $9.34 amid weakness in the homebuilders after KB Homes (KBH) reported a quarterly loss of $3.96 per share. LEN puts are seeing heavy trading, with 18,000 traded, compared to 4,700 calls. Implied vols are moving back into the triple digits.
KB Home (KBH) $14.09 -7.88%
KB Homes (KBH, chart, volatility) is down $1.17 to $14.12 and some investors in the options market appear to be bracing for further fallout ahead of an earnings report due out Friday before the opening bell. April 12.5 puts are the most actives after two blocks (7000 and 3000) traded at the offer for $2.10 [...]
KB Home (KBH) $13.91 +0.00%
Open interest in KB Homes (KBH, chart, volatility) Jan 12.5 puts increased by more than 8,000 after 7,000 traded on the bid for 85 cents Tuesday afternoon. Looks like an opening put write. With shares at $13.91, the strategist might be willing to buy shares at $12.5 (a 10.9 percent discount from current levels) or [...]
Meritage Homes Corp (MTH) $12.16 -15.61%
Meritage Homes (MTH, chart, volatility) is pacing a decline in the homebuilders Monday. Shares are down $2.29, or 15.9 percent, to $12.13 on no news. The decline appears to have motivated some action in the January 12.5 puts. 11,122 have traded on the day, pushing up total voloume in MTH optoions to three times the [...]
Toll Brothers (TOL) $22.87 +0.88%
Toll Brothers (TOL, chart, volatility) is bucking the bearish trend. The homebuilder is up 15 cents to $22.82 after Goldman Sachs added the stock to its Conviction Buy list saying the housing market might bottom in 2009 as the government looks for ways to stimulate the industry. Some bullish trading has been seen in TOL [...]
Centex Corp (CTX) $5.51 +0.00%
Volume in homebuilder Centex (CTX, chart, volatility) rose to 4 times the usual Friday, after 22,000 calls and 2,800 puts traded. The January 7.5 and December 7.5 calls both saw increases in open interest of about 10,000 contracts. About 30 minutes before the closing bell, 9,287 December 7.5s traded bidside for 60 cents while 7,615 [...]
Pulte Homes Inc (PHM) $8.10 -5.81%
Pulte Homes (PHM, chart, volatility) options volume is running three times the usual, with 27,000 contracts traded and 93 percent of the volume on the put side of the options chain. The action is similar to activity seen in two other homebuilders–DH Horton (DHI) and KB Homes (KBH). Namely, there is heavy trading in both [...]
D R Horton Inc (DHI) $5.09 -8.45%
DH Horton (DHI, chart, volatility) is seeing heavy options trading. Shares of the homebuilder are down 55 cents to $5.01 as the sector takes another hit from disappointing data (building permits today, HMI on Tuesday). The SPDR Homebuilders Trust (XHB) is falling to new record lows below $10 per share! In DHI, options volume is [...]
Toll Brothers (TOL) $18.03 -4.75%
Toll Brothers (TOL, chart, volatility) puts are active, as shares fall for a sixth consecutive trading session. TOL is off 98 cents to $17.95 and down 22 percent since November 4. In the options market, 8,000 TOL puts and 2,900 calls have traded. The March 15 puts are the most actives. 4,600 contracts have traded, [...]
