Pressure On Toll Brothers Not Likely To Abate Soon; Traders Signal For More Downside

Toll Brothers Inc TOL is scheduled to report its second-quarter results on Tuesday.

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that Toll Brothers traded more than 2.9 times its average daily volume on Monday. The options market is implying a move of around 7% by the end of the weak, higher than the 5% average over the past eight quarters, he added.

Check out other stocks making moves in the premarket.

There were buyers of 1,000 weekly 46-puts at an average price of $1.55 per contract, Khouw mentioned. Traders expect shares of Toll Brothers to decline after the earnings report, he added.

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TOL Price Action: Shares of Toll Brothers fell by 3.76% to settle at $45.53 on Monday.