How to Play Toll Brothers Ahead of Earnings

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Aug. 19 (Bloomberg) -- Bay Crest Partners Anshul Agarwal discusses his play for Toll Brothers with Olivia Sterns on Bloomberg Television's "Market Makers." (Source: Bloomberg)

That is going to do it for "market makers" today.

We will see you tomorrow.

Indeed we will.

At the beginning of the show we are going to get the latest numbers on wholesales.

We will talk about the housing boom with the ceo of credentials.

It is six minutes -- 56 minutes past the hour.

Time for "on the market.

Though let us get caught up on how markets are trading.

U.s. stocks are climbing after a four-day drop on the s&p. the dow is up almost 55 points.

Yes and p climbing 11 points.

And the nasdaq is up, performing the other industries by 32 points.

In particular, strong results.

Retailers are driving sucks -- -- stocks -- and the brothers are the focus of today's option update.

Joining me with his option strategy on the homebuilders is on j-- take us through this.

I want to finance a calls bread by the january 24 strike.

-- a call spread by the january 24 strike.

I think is the right way to go.

65 senses the original outlay.

You also have the downside the low $24. the stock is up 24% from recent highs.

It will be a nether 24 sentra off or you do see the down mind -- the sap -- another to the four percent drop before you see a tethered down a slide.

50% of analysts do have a buy rating on the stocks.

Stern, aji, and allegiant cut their rating on the stock's underperforming.

They lowered the race targets.

I believe in the housing recovery.

I think the existing home sales in home construction -- home consumption, you can defy the demographics.

Mortgage rates are still very low.

The data coming from the home investors themselves -- i like the house and recovery.

It sounds like now -- some of those concerns are not particularly applicable -- applicable.

That consumer is a little bit more than deviant to find these changes in the mortgage industry, because it puts down more down payment.

I think he is and if better financial placements on the other ones.

At least compared to where the stock is trading.

The toll brothers do play to the higher end of the market and that would be less price sensitive.

Why else do you think that the housing recovery is in a more solid footing in this huge brought off selling we have seen?

This text has been automatically generated. It may not be 100% accurate.

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