Call Spread on LEN on 8/7/2023

Lennar Corporation (LEN) operates as a homebuilder primarily under the Lennar brand in the United States. 

It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments.

The company's homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land; and development, construction, and management of multifamily rental properties.

It also offers residential mortgage financing, title, insurance, and closing services for home buyers and others, as well as originates and sells securitization commercial mortgage loans.

In addition, the company is involved in the fund investment activity. It primarily serves first-time, move-up, active adult, and luxury homebuyers.

Shares are heading higher in an upward trading channel which is supported by the stock's 50-day moving average. On June 14th, LEN reported earnings of $2.94 per share on revenue of $8.05 billion for the fiscal second quarter ended May 2023. The consensus earnings estimate was $2.32 per share on revenue of $7.17 billion. The company beat expectations by 21.49%. The next report is on September 13th.

We will be trading September 15th Call Options

Entry Point: $125.00

Trading Range: $69.90 - $133.24

Trade Buy 1 September $125.00 Call at $5.70 Sell 1 September $135.00 Call at $1.90 For a net debit of $3.80 Profit/Loss Analysis Breakeven at $128.80 Maximum profit is $620.00 at strike of $135.00 Maximum loss is ($380.00) at strike of $125.00 Closing Summary Sold 1 September $125.00 Call at $0.00 Bought 1 September $135.00 Call at $0.00

Position closed on 9/15/2023 at price of $0.00 with a -100.00% loss in 39 days.

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