Mike Khouw Sees Unusual Options Activity In Lennar

On CNBC's "Options Action," Mike Khouw spoke about unusual options activity in Lennar Corporation LEN ahead of earnings. The company is going to report earnings on Wednesday after market close and the options market is implying a move of 5% in either direction.

Calls outpaced puts on above-average volume on Tuesday, but the two most active options were, actually, puts, said Khouw. The June $91 puts were the most active, trading for $1.50. The trade breaks even at $89.50 or around 3.3% below the current stock price.