Homebuilding Stock Moves Higher Before Earnings

The stock tends to move higher after earnings

Deputy Editor
Sep 14, 2023 at 10:06 AM
facebook X logo linkedin


The shares of Lennar Corporation (NYSE:LEN) are 1.4% higher at $117.55 this morning, earlier topping $117.87 as investors prepare for the homebuilder's third-quarter earnings report, which is due out before tonight's close. Wall Street expects Lennar's in earnings to fall to $3.51 per share, with revenue falling to $8.45 billion. 

The equity does have a pretty upbeat post-earnings history over the past two years, nabbing five next-day wins, compared to just three losses. The stock has averaged a move of 2.2% after these eight instances, regardless of direction. This time around, the options pits are pricing in a larger 5.9% next-day move for the stock. 

Speaking of options pits, Lennar's are seeing an unusual amount of bullish activity today. So far, 1163 calls have crossed the tape, which is triple the intraday average. The most popular contract is the September 120 call, which expires tomorrow, followed by 123 call in the same monthly series. 

On the charts, the security is recovering from a marginal week-to-date loss, down 1.4% since Monday, though it could be seeing support emerge at the 20-day moving average. Should the homebuilding stock move upward, in-line with options traders' expectations, LEN could overtake the +30% year-to-date level. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI