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Put seller sees a floor for Pulte

Chris McKhann (chris.mckhann@optionmonster.com)

PulteGroup has gotten slammed, and now traders are calling a floor.

optionMONSTER systems detected the sale of 5,000 January 20 puts for $3. That surpassed previous open interest of 3,198 contracts, which indicates that a new position was implemented.

Those traders are now on the hook to buy shares in the homebuilder for $20 if it closes below that level on expiration. Above it, they will keep the premium as profit. (See our Education section.)

PHM fell 0.11 percent to $18.78 in morning trading, and has lost 10 percent of its value so far this month. It's now trying to hold support around the same level where it peaked late last year.

Total option volume is slightly above average in PHM so far today, with those puts dominating activity.

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