Shares of Hovnanian Enterprises (HOV) are trading higher on the session by 5.3%, at $4.97. The stock has been running higher and higher over the past six months, touching a fresh 52-week high of $5.09 today.
Despite the run, one trader is buying a large block of calls on HOV. A short while ago the May 2013 $4.50 call was purchased 10,000 times, near the offer, for $0.95. Given current open interest of 1,404 contracts, this is clearly new positioning.
Overall call volume is now running at 8x normal volume with 25,578 contracts traded.
30-day implied volatility is off 4.9% today to 64.31%, while 10-day realized vol is registering 44.46%.
Hovnanian Enterprises, Inc. designs, constructs, markets, and sells single-family detached homes, attached townhomes and condominiums, mid-rise condominiums, urban infill and active adult homes in planned residential developments.