Posts Tagged ‘LEN’

The OptionsHouse Hotlist is a scan of unusual option volume throughout each trading day. The Hotlist is accessible by all OptionsHouse customers, including those with virtual trading accounts.

Housing stocks saw some attention from option traders Wednesday after Tuesday’s Case-Shiller data offered a faint glimmer of hope for the housing sector.  The index, which tracks home prices in 20 major U.S. metropolitan areas, rose for the third consecutive time.  Prices increased in 17 of the 20 regions and are collectively 4.2% higher on a year-over-year basis.

Homebuilding name Lennar (NYSE:LEN) is closed more than 4% higher yesterday and investors appeared to make a modestly bullish bet with a large block of short puts.  In mid-morning trading on Wednesday, a block of 11,000 out-of-the-money October 13 puts crossed the tape right at the bid price of 70 cents per contract (the investor would have collected $770,000 in overall premium).  Open interest at this strike was just 254 contracts heading into the session, suggesting this volume traded to open.  (more…)