A large position is betting that Lennar will hold its ground for the next month.
optionMONSTER's tracking systems identified the sale of 5,400 November 45 puts in one print for $0.49 on Friday. Volume was well above the strikes previous open interest of 1,209 contracts, showing that this is a new position.
The put seller collects the $0.49 premium ans is looking for LEN to stay above $45 through expiration in mid-November. If the stock falls below that strike price, the trader will be on the hook to buy shares at that level. Investors sometimes sell puts this way in hopes of picking up a stock at an effective discount to existing levels. (See our Education section)
LEN rose 0.54 percent to $50.06 on Friday. The homebuilder has pulled back 5.5 percent in the last month but is still up nearly 12 percent on the year.
Friday's overall option volume in Lennar was more than triple its daily average for the last month. The put sale accounted for 72 percent of the total.
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