Homebuilders have been grabbing attention in recent sessions,
and one big investor is focusing on Beazer Homes.
optionMONSTER's trade scanners detected the sale of 4,000 December
20 puts for $0.18 today in volume far above open interest of just
662 contracts, clearly showing that this is a new position. The
trade really stands out in a name that usually sees only about
2,000 contracts change hands per session.
obligates the investor to buy shares in the Atlanta-based company
for $20 if they're below that level upon expiration at the end of
next week. Above $20, he or she would keep the premium as the
options expire worthless. (See our
BZH is up fractionally at $20.85 in afternoon trading. It came into
the day up 11 percent in the last six months, outpacing
every other homebuilder
tracked by our
analysis tool as shown on the graphic below. The industry group has
been lagging the broader market since the spring as investors worry
that higher interest rates will hurt business. Nonetheless,
earnings have mostly been strong.
The bulls have also targeted other companies in the space: D.R.
Horton and Toll Brothers saw call buying
, and today upside activity occurred today in
and KB Home.
(Graphic courtesy of
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