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July 18, 2013  Thu 3:16 AM CT

RLGY: SEE CHART GET CHAIN FIND STRATEGIES
Someone apparently thinks that Realogy might get housed.

optionMONSTER's Depth Charge monitoring system detected the purchase of about 3,000 August 45 puts for $0.55 and the sale of an equal number of August 55 calls for $0.55. Volume was more than 9 times open interest at both strikes, indicating that new positions were initiated.

The investor probably owns shares in the real estate-brokerage stock and is using the options as a hedge. He or she now has a minimum selling price of $45 and a maximum of $55 through expiration. It cost nothing to implement the strategy, which is known as a collar because it limits the amount of money that can be made to the upside or lost to the downside. (See our Education section)

RLGY rose 1.42 percent to $49.99 yesterday and is almost exactly in the middle of its range over the last three months. Housing numbers--including starts and building permits released yesterday morning--have shown signs of slowing recently, which could make some investors nervous about the stock heading into quarterly results on July 24.

Total option volume was 12 times greater than average in the session.
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