Lennar has bounced along with other homebuilders, and the bulls
are looking for further gains.
optionMONSTER's Heat Seeker monitoring program yesterday detected
the purchase of 2,700 October 41 calls for $0.80 and the sale of an
equal number of October 37 puts for $0.72. Volume was more than
triple open the interest in each strike.
The overall position is similar to owning shares because the trader
. Both halves of the strategy have
, so they'll make money to the upside and lose to the downside. It
required an initial outlay of just $0.08 and has the potential to
generate significant leveraged relative to that amount. (See our
LEN fell 0.40 percent to $39.02 yesterday, but is up 7 percent in
the last two weeks. Housing stocks have been strong recently thanks
to generally improving industry data.
Lennar has consistently reported strong quarterly numbers. Its next
release will probably come out in about a month, judging by last
The Heat Seeker also showed that some 4,000 November 40 calls were
purchased in the company, mostly for $1.62, but volume was below
Option volume was 6 times greater than average overall in the
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