Are Investors likely To Move Into KB Home?

Shares of KB Home KBH Tuesday rose almost 4%, after having shed over 15% year to date.

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that the stock was trading more than 2 times its average daily call volumes. Calls outpaced puts by nearly 2:1, he added.

There were buyers of 2,000 of the March 36 calls for an average price of $1.14 per contract, Khouw mentioned. Buyers of those calls are betting that the stock could be at least 3% higher by the end of the week, he said.

Some other homebuilders were also seeing unusual volumes in the options market, Khouw added.

Shares of KB Home were trading down 0.65% at $36.51 during pre-market Wednesday.

Also See: 6 Stocks That Moved Tuesday Following Mentions On CNBC's 'Fast Money: Halftime Report'