Shares of Hovnanian Enterprises Inc, Class A. (HOV) are trading up .28 today to $5.18.? HOV has traded as high as $5.32 today and recently hit a three-month high at $5.80.
Early morning paper bought HOV Dec 5 calls for .35 trading lifting the offer at the time.? Blocks of the Dec 5 calls of 2,200 and 3,600 traded at .35 and set the new bid at the time.? Total contract volume on the day is over 12k contracts in the strike.? Volatility is up across the term structure in HOV with volatility in Dec up 12%.? Open Interest of 1200 on the HOV DEC 5 strike would suggest these are buy to open contracts.
The 30-day implied volatility is 79%.?? 10-day implied volatility is 35%.? 30-day implied volatility is trading well over the 10 day historical volatility.? HOV earnings are Dec 13, 2012.
Hovanian Enterprises is large, diversified homebuilder.