Homebuilding Stock Heads for 5th Post-Earnings Loss

Core Insights - Toll Brothers Inc reported mixed fiscal fourth-quarter results, with earnings of $4.58 per share, missing analyst expectations of $4.87 per share, and a slight decline from the previous year's quarter [1] - Revenue for the quarter was $3.42 billion, exceeding estimates of $3.31 billion, marking a 2.7% increase compared to the same quarter last year [1] Demand Outlook - The company warned of soft demand moving forward, indicating uncertainty about the home sales environment until late January [2] - The stock is experiencing its fourth consecutive drop, although support at the 140-day moving average is limiting losses [2] Market Activity - Options trading has increased significantly, with 5,700 calls and 3,199 puts exchanged, which is 3.5 times the average daily options volume [4] - The most popular options include the December 150 call and the 125 call, with new positions opening at the January 2026 135-strike call [4]