KBH hit a record high last week
KB Home (NYSE:KBH) reported fiscal third-quarter results after the close yesterday, with earnings of $2.04 per share missing estimates by two cents, while revenue of $1.75 billion came in slightly above expectations. Plus, the homebuilding name's full-year housing revenue forecast and expected operating gross margin disappointed. This is against the backdrop of a decline in new home sales, per U.S. data released this morning.
At last glance, KBH was down 4.3% at $83.70, falling further from its recent Sept. 19 record high of $89.70. Year to date, the equity is up 34%.
Options traders are chiming in after the event. So far, 2,372 calls and 3,038 puts have crossed the tape, which is six times the overall options volume typically seen at this point. The October 80 put is the most popular, followed by the 85 put in the same series.
Some short covering could give KBH a boost in the near future, however, as short interest makes up 10.6% of the stock's available float. It would take shorts nearly five days to buy back their bearish bets, at the security's average pace of trading.