Collar in KB Home suggests short-term concern as earnings approach. Shares of the home builder down 41c or, -1.17%, near $34.49 this morning with a notable spread on the BOX floor where a trader bought 10k Apr 32 puts to sell 10k Apr 38 calls, paying a net 6c debit to open a new position sized nearly 3x the average daily option volume in the name. May provide protection with the long put struck 7% below spot, and the short call nearly 10% out of the money. Earnings next week and shares have ranged from about to 25 to 40 over the past year.
Published first on TheFly
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