KBH – KB Home – Shares in the builder of single-family homes are on the rise today, up as much as 4.6% to $17.81 on positive U.S. housing data released this morning. Call options expiring at the end of the holiday-shortened trading week are changing hands on KB Home, with some strategies looking for the price of the underlying to extend gains this week. More than 1,600 of the Nov 29 ’13 $17.5 strike calls have traded so far today, roughly two times previously existing open interest of 817 contracts. Time and sales data suggests most of the volume was purchased for an average premium of $0.24 each. Buyers of the now in-the-money call options stand ready to profit at expiration this week in the event that KBH shares settle above the average breakeven price of $17.74.
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