Toll's stock closed at $22.46, up 2.98 percent on the day and more than 70 percent since its 52-week low on Oct. 4. The shares began to pull back after hitting its 52-week high of $23.68 on Jan. 18 but seem to have found support around the $22 level.
For the calls purchased yesterday to turn a profit, the stock would need to gain some 1.5 percent before the options expire on Feb. 17.
Overall option volume in the name was more than four times its daily average. Calls at all strikes outnumbered puts by more than 7 to 1, a reflection of the bullish sentiment.
—Russell has no positions in TOL.
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David Russell is a reporter and writer for OptionMonster.