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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who wrote (22005)11/20/2004 7:29:57 AM
From: daffodil  Read Replies (1) of 110194
 
<<The homebuilders like MDC, KBH, and TOL also have expensive calls that can be sold.>>

Yikes, you're right. The premiums on TOL OTM are amazing. With TOL at about 52, you'd still get hit with a minimum OTM margin requirement of at least the premium + 5.20, but still they're appealing, even for those of us who hate to go short.

I'm starting my "TOL trolling" this weekend...driving around to some of the TOL and PHM sites in my area to see what state of development they're really in, since it's it's almost impossible to tell from their websites. I'll pass along what I learn.

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