Housing stocks have been the ultimate catch-up trade in the fourth quarter, rising 13 percent since October. But if the options market is any indication, things are about to cool off.
In a series of trades that caught the attention of options experts Monday, one large investor made several moderately bearish bets on a number of home builder stocks, including Pulte Home, D.R. Horton and Lennar.
The nature of the bets suggests that while this trader doesn't see those stocks falling hard in the new year, he or she doesn't see much upside either.