When a company sits at the crossroads of surging demand and industry dominance, the market tends to take notice—fast. Right now, one leader in the high-growth construction solutions space is riding a wave of powerful momentum, with price action that’s been grinding higher across short, medium, and long-term timeframes. This isn’t a sleepy drift upward… it’s an unmistakable show of force on the charts, the kind of move that suggests deep-pocketed institutions are quietly staking their claims. Breakouts like this don’t happen by accident—and when they do, traders who are paying attention know it’s time to watch closely.

Breaking out to fresh 52-week highs, TopBuild Corp. (BLD) is riding one of the hottest momentum waves in the market right now. With hopes of rate cuts coming in the near future, construction spending hitting multi-year peaks, and demand for energy-efficient building upgrades exploding, BLD has planted itself squarely in the path of massive capital flows. Recent results blew past expectations, triggering a rush of analyst upgrades and sparking heavy institutional accumulation on the tape. Add in tailwinds from the infrastructure bill and green building mandates, and you’ve got a technical breakout with a fundamental firestorm behind it—exactly the kind of setup traders scramble to get in front of.

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On the charts, the bullish strength couldn’t be clearer. BLD is trading above every significant long-term trend line, a picture-perfect display of sustained upside control. More importantly, the stock’s 24/52 MACD line has been riding above the 18-Day EMA since its initial bullish crossover back in June—an unmistakable signal of powerful, persistent momentum. That thrust has carried shares right up near fresh 52-week highs, with buyers showing no signs of slowing down. When a chart looks this strong and momentum is still building, it’s the kind of trade I want to be in before the next surge.

With momentum firmly at its back, my game plan here is to stay bullish—but do it strategically. Rather than chase the move outright, I’m targeting a call option debit spread that, at current prices, offers a potential 51.5% return if BLD is up, flat, or even down 7.5% by option expiration. That means I’m positioned to profit not only if the rally continues, but even if the stock takes a minor breather. If you’ve enjoyed this breakdown—seeing exactly how we spotted the setup, why it made our radar, and how I’d trade it—then you’ll love what we do inside the Weekly Workshop. This is one of our premier trading newsletters, where Chuck and the team deliver several fresh trade ideas every single week, straight to your inbox. If you want more trades like this one, this is your shot—click the image below and get in before the next wave of opportunities hits!

Wishing You the Best in Investing Success,

Chuck Hughes

Editor, Trade of the Day

Have any questions? Email us at dailytrade@chuckstod.com

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