A trader is looking for homebuilder Lennar to stay above its 52-week low in coming months.
optionMONSTER's tracking systems detected the sale of 2,200 December 31 puts on Friday, mostly for $0.55. This is clearly a new position, as open interest in the strike was just 60 contracts before the trade appeared.
The put seller is looking for LEN to stay above $31 through mid-December, a price that it dipped below only once in the last year, on Aug. 15. If shares do fall below that level again, the trader will face the obligation to buy shares at an effective price of $30.45 once the credit from the put sale is included. (See our Education section)
LEN fell 1.6 percent on Friday to end the week at $34.98, in the middle of its recent range. The stock has been bouncing mostly between $33 and $37.50 since early September, recently hitting resistance at its 200-day moving average. Shares dipped below $31 just once in the last year, on Aug. 15.
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