Decoding Lennar's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bearish stance on Lennar LEN.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether this is an institution or just a wealthy individual, we don’t know. But when something this big happens with LEN, it often means somebody knows something is about to happen.

Today, Benzinga’s options scanner spotted 8 options trades for Lennar.

This isn’t normal.

The overall sentiment of these big-money traders is split between 37% bullish and 62%, bearish.

Out of all of the options we uncovered, 7 are puts, for a total amount of $1,077,053, and there was 1 call, for a total amount of $180,180.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it’s evident that the major market movers are focusing on a price band between $110.0 and $121.0 for Lennar, spanning the last three months.

Volume & Open Interest Development

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Lennar’s options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Lennar’s whale activity within a strike price range from $110.0 to $121.0 in the last 30 days.

Lennar Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

About Lennar

Lennar is one of the largest public homebuilders in the United States. The company’s homebuilding operations target first-time, move-up, and active adult homebuyers mainly under the Lennar brand name. Lennar’s financial-services segment provides mortgage financing and related services to its homebuyers. Miami-based Lennar is also involved in multifamily and single-family for rent construction and has invested in numerous housing-related technology startups.

After a thorough review of the options trading surrounding Lennar, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of Lennar

• Currently trading with a volume of 1,090,831, the LEN’s price is down by -2.01%, now at $116.54.
• RSI readings suggest the stock is currently may be approaching oversold.
• Anticipated earnings release is in 7 days.

Professional Analyst Ratings for Lennar

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $141.67.

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* An analyst from Keefe, Bruyette & Woods has revised its rating downward to Market Perform, adjusting the price target to $141.
* An analyst from Wells Fargo persists with their Equal-Weight rating on Lennar, maintaining a target price of $130.
* Showing optimism, an analyst from Seaport Global upgrades its rating to Buy with a revised price target of $154.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Lennar options trades with real-time alerts from Benzinga Pro.