Jon "DRJ" Najarian, co-founder of OptionMonster.Lennar ( LEN) is seeing a feeding frenzy of bearish options trading as hedge fund managers circulate rumors that the homebuilder has hired a bankruptcy law firm. More than 11,600 puts changed hands this morning in the first 30 minutes of trading alone, dwarfing the average volume of 2,300 contracts for a full session. The activity was focused on the March 5 strike, where some 8,400 puts traded against open interest of 2,130 contracts, according to OptionMonster's tracking systems. Bankruptcy rumors involving Lennar have surfaced before, and there is no indication that there is any support for this latest chatter. In fact, despite this talk and the bearish options action, LEN is up 6% in midday trading to $6.46. The writer has no positions in Lennar.