The Bull Run In Lennar May Be Far From Over

Lennar Corporation’s LEN stock has gained more than 11% in the past month and has added close to 50% year to date.

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said there were five times the average daily call volumes.

The market was driven by one large trade, Khouw mentioned. One of the trades bought 5,000 December 115/120 call spreads at an average price of $1.40. The trader is betting on the stock rising between 5% and 8% by December expiration, he added.

The company is scheduled to report earnings on Dec. 16. So, the trade “is going to capture that event” and give the trader $1.8 million in profits if the stock reaches the upper strike, Khouw said.