Lately in the options markets there has been an exception to the general theme of bearish put buying in exchange traded funds that track the homebuilder and construction space.

Bullish call buyers were present in SPDR S&P Homebuilders (NYSEArca: XHB) and the ETF has rallied over the past three sessions after trading at its lowest levels since 2010 earlier this week.

Similar ETFs in the sector are iShares DJ U.S. Home Construction (NYSEArca: ITB) and PowerShares Dynamic Building and Construction (NYSEArca: PKB), and the sector’s performance has lagged significantly year to date.

XHB is down 20.64%, ITB is down 29.05%, and PKB is down 19.01% all compared to the S&P 500 down only 7.53% year to date.

The call activity may be an indicator that investors foresee further strength in the sector and a potential narrowing of the performance gap between the homebuilders/construction sector and the broad market.

SPDR S&P Homebuilders

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