Credit: Shutterstock photoHousing appears to be on the mend, and the bulls are piling into Realogy.
optionMONSTER's Heat Seeker monitoring program detected the purchase of almost 2,700 August 35 calls, most of which priced for $2.60. Volume was more than 30 times open interest at the strike, which indicates that new positions were initiated.
It was the second straight day that investors bought calls in the company, which owns brokerage brands such as Century 21 and Coldwell Banker. They now stand to profit from upside in the shares cheaply with the potential for significant leverage if a rally unfolds. Yesterday's July 35 calls , for instance, have appreciated more than 30 percent so far. (See our Education section)
RLGY is up 1.43 percent to $36.26 in afternoon trading. It's down 26 percent so far this year but has been attempting to form a double-bottom around $35 in the last month.
Housing data has been better recently, with existing-home sales beating expectations yesterday and new-home sales coming in strong today. Employment and consumer confidence have been strong as well, and there's been evidence of increased mortgage lending.
Total option volume in RLGY is 2.5 times the daily average, with calls outnumbering puts by more than 14 to 1.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
