Homebuilders are roaring back to life today, and traders are making money left and right.
optionMONSTER’s Heat Seeker monitoring program has detected unusual activity in the group on several occasions in the last month. It started with Lennar on Oct. 10 as investors rolled bullish positions from the November contracts to January. We suggested that subscribers get long the 42s against the 44s, paying no more than $0.65 in the process. LEN has shot higher and now they’re set to triple their money.
PulteGroup’s November 19.50 calls also drew buyers on Oct. 29 for $0.49. PHM has also climbed and those called more than doubled by this morning. On Friday, the bullishness spread to Hovnanian Enterprises’ February 4.50 calls, which were followed today with more buying in February 4s.
— Option Monster