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.

Get Started

Earn 7.2% — No Matter What the Fed Does

Markets expect rate cuts — but your earnings don’t have to suffer. Lock in 7.2% until 2028 from ten individual bonds.

Get Started

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'