As KB Home pushes higher today, one large trader is betting on a floor beneath the homebuilder's shares.
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.
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