Beazer Homes USA has been consolidating for the last two weeks after starting the year strong, and now traders are ready for the rally to resume.
OptionMonster's tracking systems detected the purchase of about 7,800 February 2.50 calls for $0.80 to $0.85. Volume was almost 12 times open interest in the strike.
Those contracts lock in the price the trader must pay for shares in the Atlanta-based homebuilder. They are in the money, meaning that the strike price is below the stock's current level. That essentially lets the trader control shares without having to pay the full price.