The bulls are moving into Ryland Group before earnings come out tonight.
optionMONSTER’s Heat Seeker monitoring program detected the purchase of some 2,000 August 42 calls, first for $1.85, followed by smaller prints for $1.50 after the shares pushed lower. Volume was more than triple previous open interest at the strike, indicating that new positions were initiated.
These long calls lock in the price where shares can be purchased in the homebuilder no matter how high they may go. That lets investors cheaply position for upside with significant leverage and avoid big losses if it drops.
— Option Monster