Traders Making Large Bets on Ryland Group Inc (RYL) Call Options

Ryland Group Inc (RYL) is a homebuilder with operations in the United States. RYL stock is currently trading around $41.67 in a 52 week range of $30.33-$49.66. The stock has been performing relatively well this year with shares rallying just over 7.8% year to date. The stock is seeing a nice move higher today as shares rally by nearly 3% on the session. On this move higher we are seeing some very bullish unusual options activity indicating that traders believe this move will continue.

Earlier this morning a trader bought 4,331 RYL Jun 42 Calls for $1.40. RYL has traded over 7.1 times its average daily options volume today and nearly 8,000 contracts have now traded on that line. This block of calls in RYL also represents a more than $600,000 bet on further upside in RYL. After these calls hit the tape RYL saw a pop higher and these calls moved higher with the stock. These calls have already traded as high as $1.64 on the day making this a very profitable trade.

Trade: A trader bought 4,331 RYL Jun 42 Calls for $1.40
Risk: $140 per 1 lot
Reward: Unlimited
Breakeven: $43.40

If a trader bought a 20 lot of these calls they would have profited $480 at the highs in a matter of minutes.

Andrew Keene

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