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September 20, 2016  Tue 9:13 AM CT

LEN : SEE CHART GET CHAIN FIND STRATEGIES

Traders apparently believe that downside potential is limited in homebuilder Lennar.

optionMONSTER's tracking programs detected the sale of 2,500 October 41 puts for $0.47. Volume was more than 10 times open interest at the strike, which indicates new money was put to work.

Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think the risk of a big drop is limited. (See our Education section.)

LEN fell 3.53 percent to $43.50 in morning trading despite beating earnings and revenue estimates in the pre-market.

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