KB Home Shares Lower After Q4 Earnings, Sales Miss
KBH ? KB Home ? Shares in KB Home are moving lower on Thursday after the company reported fourth-quarter earnings and revenue that missed the average of analyst estimates prior to the opening bell this morning. The stock is down 3.5% on the day at $16.94 as of 11:10 a.m. EST. ?
December expiry put options changing hands on the homebuilder during the first 10 minutes of the session look for shares to continue to slide lower ahead of the weekend. The Dec $17 strike puts traded around 3,500 times in the early going, exceeding open interest of 2,875 contracts. Most of the $17 puts appear to have been purchased at a premium of $0.18 each, and may be profitable at expiration this week in the event that KB Home shares settle below the breakeven price of $16.82. Shares in KBH are still positive for the year, up roughly 5.0% since January 2nd, but have dropped more than 30% since reaching a 52-week high of $25.14 in May.
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