Re: Time to buy homebuilder stocks?
I have some Toll Brothers I can't get rid of. I bought it around 28 as a covered call play. I started writing out of the money calls against it and they kept going out worthless. So I switched to at the moneys and they all went out worthless then I started writing in the moneys. Last ones I wrote were sep 20's (expire next week) and I think the stock is 19 and change. I hope I get called out this time. If not I might just dump it. I wrote enough against it to make it a winner and I think it'll get worse before better.
Also have some sep 17.5 HOV puts I speced when it was up around 20. Rode 'em to 12.5 and sold the 12.5 puts as a hedge. Now it's at 10. I wish I wouldn't have spread them off [img]/images/graemlins/smile.gif[/img]
I think there are lots better opportunities than getting long the homebuilders.
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