Lennar is back up to five-year highs, but a large put spread tops today's option volume in the homebuilder.
LEN is up 1.47 percent to $31.69, not far from the closing high from July 6, which was the highest since August of 2007. The stock has climbed from $12.14 just since last October.
Almost 16,000 LEN options have traded, compared to a daily average of 6,000. The action is in a put diagonal spread.
A trader sold 6,131 August 31 puts for the bid price of $0.34 against open interest of 7,441. At the same time, he or she bought 6,131 November 30 puts for $1.97 against open interest of 1,226, so that was a new position.
As August expiration looms at the end of this week, the trader appears to be rolling the puts out a few months and paying up for that time. Given the time frame, this may well be hedging against long shares as the trader wants to continue that protection. (See our Education section)
Options Trading News
Social Media
Follow optionMONSTER for news and updates
Premium Services
-
Semi-active traders looking for simple calls and spreads (5 per week).
Learn More -
Entry-to-mid level traders looking for full circle trade analysis (1 per week).
Learn More -
Tailored, one-on-one education designed and led by Jon & Pete (3 months and up)
Learn More
