The shares of Lennar Corp (NYSE:LEN) are down 2.5% to trade at $126.29 at last glance, after the homebuilder missed third-quarter revenue expectations and issued a disappointing fiscal fourth-quarter forecast for home orders. The company was deeply impacted by job market instability and inflated prices.
Should the stock continue to succumb to today's pressure, it will mark its seventh loss in the last nine sessions. LEN is trading at its lowest level since mid-August as it pulls away from its Sept. 5, year-to-date peak of $144.24. The equity is now relying on support from the 60-day moving average, but carries a 32.4% year-over-year deficit.
Analysts are mostly bearish on the stock. Of the 19 brokerages in coverage, only four recommend a "strong buy," while the rest maintain a lukewarm "hold."
Long term, though, traders have been betting on a comeback -- over at the International Securities (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day call/put volume ratio of 2.19 sits in the 97th percentile of readings from the past year.
In the options pits, 23,000 calls and 22,000 puts have been exchanged so far today, driving intraday activity to 10 times the typical amount. The most popular contract is the September 130 put, where new positions are being opened.
