Markets

Why put buyer is nervous about Lennar

Lennar is back to its highest levels since the spring, and one investor is nervous about a pullback.

optionMONSTER's monitoring systems detected the purchase of more than 6,000 January 20 puts for $1.15 to $1.25. Volume is almost triple the open interest in the strike when the session began.

LEN is up 0.51 percent to $19.78 in midday trading and has rallied about 50 percent from the start of October. The homebuilder has been climbing amid strong earnings reports as economic data showed continued improvement in the U.S. housing market.

Nonetheless, LEN is not far from levels where it rolled over in March, which could make some investors nervous that it will pull back. That appears to be the rationale behind today's activity.

Overall option volume in LEN is more than twice the average amount so far today, with puts outnumbering calls by 9 to 1.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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