Trader bets on floor beneath KB Homes
Chris McKhann | firstname.lastname@example.org
KBH is up another 1.75 percent to $8.14 as it continues to rebound but is still well off its 52-week high of $13.12 set in mid March. The stock was down at $7 last week and $6.50 the week before, which was its lowest level since the end of 2011.
A trader sold 10,270 and then 2,972 August 8 puts for the bid price of $0.68, according to optionMONSTER's systems. There was no open interest as that is a new expiration.
The put selling is a bet that KBH will hold up above $8 through that August expiration. The trade also shows a willingness to buy the stock if shares fall below the strike price. (See our Education section)
Total option volume in the name tops 15,000 contracts, about 4 times its daily average.