Hope, it appears, springs eternal for Lennar.
Once again, an investor has adjusted a money-losing position in the Miami-based homebuilder. optionMONSTER's tracking programs detected the purchase of about 14,000 September 16 puts for $3.10 and the sale of an equal number of October 13 puts for $1.23. Volume was below open interest in September, which indicates that an existing short position was rolled to the lower strike.
LEN closed as $12.71 yesterday, down 0.08 percent in the session. The trader probably sold the September contracts 2-3 months ago when the stock was trading above $17. Now that it's dropped, he or she is adjusting the position in hope of a rebound.
It appears that an investor had a large short position in the September 16 puts. He or she rolled half to the September 13 strike on Thursday, and then waited for the October contracts to become available yesterday. Going another month into the future let them collect about $0.50 of additional income.
Our tracking systems detected another, similar trade back on Aug. 10, when a short position was rolled down from the September 18. See this story for more.
LEN has been showing signs of improvement despite weakness in the broader housing market, with earnings surprisingly strong on June 23.
Overall options volume in the stock was 8 times greater than average yesterday.
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