Lennar Corp. - LEN - close: 31.06 change: +1.08

Stop Loss: 29.49
Target(s): 34.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Some of the homebuilders were showing relative strength today. If the market can manage a rally then the homebuilders could see a short squeeze. That's definitely true for LEN now that shares have rallied toward multi-year highs. The most recent data listed short interest at almost 22% of the 161 million share float.

Today's high was $31.37. I am suggesting a trigger to launch bullish positions at $31.40. More conservative traders will want to wait for LEN to trade over $32.00 instead as their entry point. We'll use a stop under today's low. Our target is $34.50.

FYI: The Point & Figure chart for LEN is bullish with a long-term $46 target.

Trigger @ 31.40

Suggested Position: buy LEN @ (trigger)

- or -

buy the Aug $32 call (LEN1218H32) current ask $1.27

Annotated chart:

Entry on July xx at $ xx.xx
Earnings Date 09/12/12 (unconfirmed)
Average Daily Volume = 7.2 million
Listed on July 12, 2011