Toll Brothers, the homebuilder, was trading just under $377 when a trader bought just over 21,000 of the TOL Sep 37 calls paying 3.95 on splits.? While this could be a hedge against a short, based on the duration and the strike placement, this is likely a straight bull play.
This trade should be viewed as a long term bullish play and an aggressively bullish play on volatility.? The trader believes that the stock is going to make a move higher by almost 4 dollars above the strike price (or more) in the next 7 or so months.
Traders looking to piggy back should look at selling put spreads as IV in TOL is at the higher end of its near term range.