Lennar trade extends downside position
Chris McKhann | firstname.lastname@example.org
More than 17,000 LEN options have already changed hands this morning, more than twice its full-session average. Almost all of the volume is in one spread.
A trader sold 8,000 May 26 puts for $0.32, less than the open interest of 10,916, according to optionMONSTER's Depth Charge system. At the same time, he or she bought 8,100 June 26 puts for the ask price of $1.08. The previous open interest at that strike was just 1,335, so that was a new position.
With May expiration at the end of next week, this certainly appears to be a put roll as the trader sells the May contracts and buys the Junes to get more time. This would avoid the increased time decay that comes as expiration approaches. (See our Education section)
Lennar is down 2 percent to $27.33 today after reaching a four-year intraday high of $30.08 last week. Shares are still within yesterday's range but just below the close from April 26.