Meritage Homes Corporation (MTH) is a designer and builder of homes in the U.S. The company’s stock is currently trading around $42.50 in a 52 week range of $38.42-$52.95. The stock has been underperforming the market this year with shares falling nearly 11.6% year to date. In spite of the stocks weakness this year we are seeing traders stepping in to get long MTH before they report earning on Apr 23rd. Earlier today a trader bought 2,000 MTH Sep 45 Calls for $2.90. This is the largest block to trade in MTH on a day when options volume in MTH is 8 times the average daily volume. Although the stock is weak on a chart this is a sizeable bet and could signal for a long opportunity in MTH.

Block Trade: A trader bought 2,000 MTH Sep 45 Calls for $2.90
Risk: $290 per 1 lot
Reward: Unlimited
Breakeven: $47.90

Andrew Keene


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