Wednesday, November 11, 2009

Stock/Option Volume Alert in Toll Brothers (TOL)

Who said home builders won’t do well as an investment?  Toll Brothers Inc. (NYSE: TOL) is soaring on exponential trading volume today.  We have seen almost 5X volume in the stock as at 2:10 PM EST there have been 17.2 million shares versus less than 4 million on average.  The gain is to $21.10 and teh 52-week range is $13.55 to $24.30.  But here is the call options and put options trading for the NOV-2009 expiration:

CALL$    Volume    OpInt
$18.00    1,421    6,094
$19.00    2,849    7,896
$20.00    1,387    10,712
$21.00    3,210    12,640
$22.00    2,541    1,127
PUT$    Volume    OpInt
$20.00    3,781    5,840
$21.00    1,329    397

This is on heels of a Wells Fargo upgrade AND on its guidance that new contracts are up 42% and fourth quarter revenue will beat analyst estimates at $486.6 million.  To put this in perspective from a 2008, this is way above the $386+ million estimate from Thomson Reuters.  But it is also far south of a year ago’s $691 million in revenues for the same quarter.

JON OGG


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