Update $LEN: Closing Jan Put Butterfly for Gain

by Dan January 7, 2016 9:38 am • Trade Updates

Prior to Lennar’s (LEN) fiscal Q4 results in mid December, we placed a defined risk bearish trade when the stock was near $49, from Dec 17th:

Trade: LEN ($48.95) Bought Jan 48 / 44 / 40 Put ButterFly for 70 cents

This morning LEN is trading at the guts of the Put Butterfly at $44, and our trade is worth about $2, or about a $1.30 gain.  With the stock at very important technical support that we identified in our trade idea post, we are now going to close the position and take the gain.

ACTION: Sell to Close LEN ($44) Jan 48 / 44 / 40 Put ButterFly at $2