Homebuilders have been bulletproof recently, and yesterday the bulls moved into Toll Brothers.
OptionMonster’s tracking systems detected heavy buying in the May 25 calls, which initially priced for $1.40. They later fetched as much as $2.15, as the stock pushed higher throughout the session.
Long calls lock in the price investors must pay to buy the stock. That gives them considerable leverage relative to the underlying share price. For example, Toll Brothers swung less than 7 percent in the course of yesterday’s session, but those options appreciated by more than 50 percent.