IB Options Brief: SPDR S&P Homebuilders ETF

Options Unusual Activity

IB Options Brief: SPDR S&P Homebuilders ETF

Posted June 7th, 2012 by Caitlin Duffy in Unusual Activity

Traders Construct Bullish Positions In Homebuilders ETF Options

XHB ñ SPDR S&P Homebuilders ETF
Heavy call buying in the front month calls on the Homebuilders ETF this morning may mean some traders are positioning for the price of the underlying to extend gains through expiration next week. Shares in the XHB, an ETF comprised of positions in homebuilding-related stocks including Home Depot, Bed Bath & Beyond and Toll Brothers, are up 1.25% at $20.16 this afternoon.

The Jun. $21 strike call saw the most action this morning, with more than 30,000 contracts changing hands against open interest of 20,554 positions. The single-largest trade, a block of around 21,440 call options, appears to have been purchased outright at a premium of $0.18 each. The call buyer stands ready to profit should shares in the XHB move up another 5.0% to top the effective breakeven price of $21.18 by June expiration.

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