Paper sold 11700 KBH Feb 10 calls at .58 untied and the stock. KBH was above 10.00 a share at the time.
KB Home Inc., trading at 10.33 with an IV30 of 47.02, down 2.7%, and an HV10 of 51.25, is seeing bearish call selling today.? KBH, with an ADV of 3200 contract and OI of 98k, saw a trader sell 11700 of the Feb 10 calls at .58.? This trade was untied and the stock was above 10.00 a share at the time and was traded via sweeping trades untied to stock.
This is likely a trader that owned stock in KBH or bought it in the open market simultaneously against this position. This trade is likely a near term income trade with the trader looking to produce income against a call purchase or alternately looking to have the stock called away above 10.? As the stock reports earnings on the 2nd this also could be a play at reducing downside risk in the stock
Trade should be considered bearish the name and aggressively bearish volatility.