Mike Khouw Sees Unusual Options Activity In Lennar

On CNBC's "Options Action," Mike Khouw spoke about unusually high options volume in Lennar Corporation LEN on Tuesday. He noticed that put options volume was 2.5 times the average daily put options volume.

The company is scheduled to report earnings on Wednesday, after market close, and the options market is implying a move of 6.4% in either direction by the end of the week. The stock moves around 3.8% on average.

The most active options were the December $74 puts. Around 3,000 contracts were traded for $2.25. Buyers are betting the stock is going to trade below $71.75 at the expiration date on Friday.