On CNBC’s “Options Action,” Mike Khouw said Toll Brothers Inc (NYSE:TOL) traded more than five times the average daily call options volume and calls significantly outpaced puts by almost 4.5 to 1.
The company is going to report earnings on Tuesday after the market closes and the options market is implying a move of 5.7% in either direction, which is in line with the average move over the last eight quarters.
The most active options were the August $60 calls as over 1,800 contracts were traded for an average price of $1.60. Buyers of these calls are betting Toll Brothers is going to trade above $61.60 or more than 3.74% higher by the end of the week.
