Bulls Building a Case For KB Home (KBH)

Shares of KB Home KBH are higher on the session by 0.72%, currently trading at $11.14. The stock has been moving largely lower over the past six months and is trading well below the 200-day moving average. KBH is also below the 50-day moving average, though it (the 50-day) has begun to smooth sideways. Options traders are buying calls on the name today. A short while ago the January 2011 $16.00 call was purchased 10,000 times, on the offer, on open interest of 11,001 contracts. Overall call volume is now running at 2.83x the daily average, 98% on the offer. KB Home operates a homebuilding and financial services business serving homebuyers in markets nationwide. It constructs and sells homes through its operating divisions across the United States under the name KB Home. The company operates in 10 states and 30 markets, including California, Arizona, Nevada, Colorado, Texas, Florida, Maryland, North Carolina, South Carolina and Virginia.