After being left behind on the broader S&P 500 rally, it seems the real estate sector is now cold enough (and cheap enough) for some Wall Street participants to start considering it again. This time around, spotting unusual call options trading activity can lead investors to where these high convictions are for the market, especially in the homebuilding industry.
The SPDR S&P Homebuilders ETF (NYSEARCA: XHB) has reported an unusual level of interest coming from options traders on the call side, which is fundamentally a bet that the entire space is going to see higher prices in the coming months.
