Why KB Home Stock May Be Heading For A 50% Decline

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that KB Home KBH traded more than 16 times its average daily put volume on Thursday.

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There were buyers of 19,000 of the January 2025 weekly 15 puts at an average price of $1.72 per contract and there were sellers of 19,000 of the January 2024 weekly 15 puts at an average price of 97 cents per contract, Khouw mentioned. Traders rolled out a big hedge against a 50% decline in KB Home over the next two years, he added.

KBH Price Action: Shares of KB Home declined by 0.072% to settle at $27.72 on Thursday.