Lennar Offering Possible 5.26% Return Over the Next 10 Calendar Days

Lennar's most recent trend suggests a bearish bias. One trading opportunity on Lennar is a Bear Call Spread using a strike $36.00 short call and a strike $41.00 long call offers a potential 5.26% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $36.00 by expiration. The full premium credit of $0.25 would be kept by the premium seller. The risk of $4.75 would be incurred if the stock rose above the $41.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Lennar is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Lennar is bearish.

The RSI indicator is below 20 which suggests that the stock is in oversold territory.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Lennar

Why the Fed can’t save housing
Wed, 06 Nov 2013 22:25:25 GMT
Talking Numbers – http://d.yimg.com/hd/cnbc2/lotus/1383775013281_851_21yLHCoUfIbf1_1_0.jpg?s=3f6417cf74937b1d280754430317acf5&c=7ba738c17962e70d176e7d38cb27a056&a=cnbc2&mr=0

Fundamental Improvements In Housing Continue
Wed, 06 Nov 2013 17:50:57 GMT
Seeking Alpha – We've seen the recent hike in interest rates put a moderate dent in the upward trajectory of performance at Lennar ( LEN ) and KB Home ( KBH ) in their respective third quarters. This was also the case …

LENNAR CORP /NEW/ Files SEC form 8-K, Other Events, Financial Statements and Exhibits
Tue, 05 Nov 2013 21:42:50 GMT

Bernanke Giving Homebuyers Second Chance With Pledge: Mortgages
Tue, 05 Nov 2013 21:36:33 GMT
Bloomberg – This was supposed to be the year that Herb Harrison found a newer, bigger home to replace his current house in Framingham, Massachusetts. Then, in May, mortgage rates began to rise and he put his hunt …

Rialto Holdings, LLC — Moody's rates Rialto's proposed senior notes B2
Mon, 04 Nov 2013 21:21:19 GMT
Moody's – Approximately $250 million of securities affected. New York, November 04, 2013– Moody's Investors Service assigned a B1 corporate family rating to Rialto Holdings, LLC. and a B2 senior unsecured rating …

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