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Smart Money Is Betting Big In TOL Options

Author: Benzinga Insights | August 23, 2024 10:30am

Investors with a lot of money to spend have taken a bullish stance on Toll Brothers (NYSE:TOL).

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with TOL, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 13 uncommon options trades for Toll Brothers.

This isn't normal.

The overall sentiment of these big-money traders is split between 46% bullish and 23%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $172,885, and 10 are calls, for a total amount of $848,626.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $125.0 and $145.0 for Toll Brothers, spanning the last three months.

Volume & Open Interest Development

In today's trading context, the average open interest for options of Toll Brothers stands at 233.36, with a total volume reaching 1,304.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Toll Brothers, situated within the strike price corridor from $125.0 to $145.0, throughout the last 30 days.

Toll Brothers Option Volume And Open Interest Over Last 30 Days

Options Call Chart

Largest Options Trades Observed:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
TOL CALL TRADE BULLISH 03/21/25 $16.2 $16.0 $16.2 $145.00 $324.0K 434 200
TOL CALL TRADE NEUTRAL 09/20/24 $18.6 $18.0 $18.35 $127.00 $128.4K 3 102
TOL CALL TRADE NEUTRAL 08/23/24 $17.3 $16.7 $16.99 $127.00 $118.9K 283 123
TOL CALL TRADE NEUTRAL 09/20/24 $7.7 $7.3 $7.5 $141.00 $75.0K 121 100
TOL PUT SWEEP BEARISH 01/16/26 $12.7 $12.5 $12.7 $125.00 $71.1K 102 56

About Toll Brothers

Toll Brothers is the leading luxury homebuilder in the United States with an average sale price well above public competitors'. The company operates in over 60 markets across 24 states and caters to move-up, active-adult, and second-home buyers. Traditional homebuilding operations represent most of company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the US It has its headquarters in Horsham, Pennsylvania.

Having examined the options trading patterns of Toll Brothers, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Current Position of Toll Brothers

  • With a trading volume of 462,277, the price of TOL is up by 4.6%, reaching $147.77.
  • Current RSI values indicate that the stock is may be approaching overbought.
  • Next earnings report is scheduled for 102 days from now.

Professional Analyst Ratings for Toll Brothers

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $149.6.

  • An analyst from Barclays has decided to maintain their Underweight rating on Toll Brothers, which currently sits at a price target of $135.
  • Maintaining their stance, an analyst from Keefe, Bruyette & Woods continues to hold a Outperform rating for Toll Brothers, targeting a price of $142.
  • An analyst from B of A Securities has decided to maintain their Buy rating on Toll Brothers, which currently sits at a price target of $160.
  • Maintaining their stance, an analyst from Oppenheimer continues to hold a Outperform rating for Toll Brothers, targeting a price of $168.
  • An analyst from RBC Capital has decided to maintain their Outperform rating on Toll Brothers, which currently sits at a price target of $143.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Toll Brothers with Benzinga Pro for real-time alerts.

Posted In: TOL

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