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Lennar Stock Drops as Earnings, Revenue Miss Esitmates

Options bears are blasting LEN after the event

Deputy Editor
Dec 19, 2024 at 11:36 AM
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Shares of home construction stock Lennar Corp (NYSE:LEN) are 2.7% lower at $141.98 today, and earlier hit an annual bottom of $135.21. This comes after the homebuilder reported fiscal first-quarter earnings of $4.06 per share on revenue of $9.95 billion both of which missed expectations with results weighed down by rising mortgage rates. 

Lennar stock is pacing for its eighth consecutive loss and 11th drop in the last 12 sessions. Now down 28% over the last three months, LEN is poised to exit 2024 in the red, now down 7% year to date. The equity's 14-Day Relative Strength Index (RSI) is sitting at its lowest level since 2020 and deep in oversold territory, a narrative worth monitoring heading into 2025. 

In the options pits, 2,705 calls and 4,074 puts have crossed the tape, which is five times the average intraday volume. Leading the pack is the December 146 put, followed by the 140 put from the same standard series. 

This denotes a shift in the options pits, where bullish bets have been preferred. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio of 1.58 stands higher than 80% of readings from the past 12 months.

 

 

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