According to CNBC, the home construction exchange-traded fund (ETF), ITB, is up 15 percent this year. Traders are increasingly optimistic, as someone placed a $1 million bet that the ETF will jump more than 20 percent through the end of 2017.
Specifically that trader bought 24,000 Jan. 18 38-calls for 60 cents per options contract. "[This is] a substantially bullish bet … volatility is low, therefore options are cheap," Khouw added.
New home sales are up 6 percent since January.
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