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Swing Trade Idea (LEN) – November 9, 2023

Our bearish trade for Thursday, November 9th is Lennar Corp. (LEN). LEN is part of the Consumer Discretionary Sector, which has performed at -0.47% over the last month, with LEN overperforming at 6.91% over the same period.

LEN had a very bullish week as the general market bounced higher. As it is currently trading around a major level of resistance at $120, from where we expect to see a pullback. The next area of support is at around $100. LEN has also overperformed relative to its sector and is currently in an overbought condition, adding to our bearish bias.

As a close, if LEN were to trade above $125 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $6.10.