NEW YORK (TheStreet) -- Traders are getting constructive on Masco(MAS) - Get Report as housing comes to life.

OptionMonster's Heat Seeker tracking system detected the purchase of about 7,600 May 26 calls on Thursday, dwarfing the previous open interest of just 36 contracts and showing that new money is at work in the trades. The initial blocks priced for $1.18 to $1.35, but premiums rose as high as $1.54 as the session progressed.

Long calls lock in the price where investors can buy a stock, allowing them to position for a rally while risking only a fraction of the cost of buying shares directly. That can also result in significant leverage on a percentage basis if the stock moves higher.

Masco rose 2.11% to $26.62 on Thursday. The supplier of cabinets, faucets, and paint has spent most of the year fighting a key resistance area from the mortgage-bubble meltdown in 2007.

Earnings and revenue beat expectations in February, and housing data has been showing signs of improvement in recent weeks. Our proprietary ResearchLab market scanner also shows homebuilders and their suppliers outperforming this year after lagging in 2014.

Total option volume in MAS was 9 times greater than average in the session, with calls outnumbering puts by more than 100 to 1.

Russell has no positions in MAS.