What the Options Market Tells Us About Toll Brothers

Author: Benzinga Insights | May 22, 2024 12:01pm

Deep-pocketed investors have adopted a bullish approach towards Toll Brothers (NYSE:TOL), and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in TOL usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 16 extraordinary options activities for Toll Brothers. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 37% leaning bullish and 31% bearish. Among these notable options, 13 are puts, totaling $790,875, and 3 are calls, amounting to $138,195.

Predicted Price Range

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $25.0 to $140.0 for Toll Brothers during the past quarter.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Toll Brothers's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Toll Brothers's significant trades, within a strike price range of $25.0 to $140.0, over the past month.

Toll Brothers Call and Put Volume: 30-Day Overview

Noteworthy Options Activity:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
TOL	PUT	SWEEP	BULLISH	09/20/24	$15.9	$12.4	$12.66	$135.00	$119.9K	236	97
TOL	PUT	SWEEP	BULLISH	09/20/24	$14.3	$11.9	$12.3	$135.00	$91.0K	236	172
TOL	CALL	TRADE	BEARISH	05/31/24	$32.6	$30.4	$30.4	$90.00	$82.0K	0	27
TOL	PUT	SWEEP	BEARISH	09/20/24	$17.5	$15.9	$16.34	$140.00	$79.8K	239	50
TOL	PUT	TRADE	NEUTRAL	09/20/24	$16.5	$15.4	$15.95	$140.00	$79.7K	239	175

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 U.S. It has its headquarters in Horsham, Pennsylvania.

Following our analysis of the options activities associated with Toll Brothers, we pivot to a closer look at the company's own performance.

Toll Brothers's Current Market Status

• With a volume of 2,536,647, the price of TOL is down -7.73% at $120.15.
• RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
• Next earnings are expected to be released in 90 days.

What The Experts Say On Toll Brothers

4 market experts have recently issued ratings for this stock, with a consensus target price of $124.75.

• Consistent in their evaluation, an analyst from Wells Fargo keeps a Overweight rating on Toll Brothers with a target price of $150.
• An analyst from Citigroup has decided to maintain their Neutral rating on Toll Brothers, which currently sits at a price target of $139.
• Reflecting concerns, an analyst from Wedbush lowers its rating to Neutral with a new price target of $105.
• Reflecting concerns, an analyst from Wedbush lowers its rating to Neutral with a new price target of $105.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Toll Brothers, Benzinga Pro gives you real-time options trades alerts.

Posted In: TOL