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Trade sees big move in PulteGroup

Chris McKhann (chris.mckhann@optionmonster.com)

A large trade is looking for a big move up or down by homebuilder PulteGroup in the next seven months.

optionMONSTER systems show that 4,000 April 14 puts traded for $0.98 yesterday. This is clearly a new position, as volume was more than twice the strike's previous open interest.

Seconds later, a block of 100,000 PHM shares traded for $16.65. The combined stock and option activity creates an overall long-volatility  play that is looking for PHM to make a sharp move higher or lower by mid-April 2014. (See our Education section)

PHM finished yesterday down 0.42 percent to $16.50. The stock was above $18 two weeks ago and at a 52-week low of $14.23 in mid-August.

More than 10,000 PHM options changed hands on the day, twice its daily average in the last month. 

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