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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: patron_anejo_por_favor who wrote (29103)3/22/2005 2:06:39 PM
From: ild  Read Replies (1) | Respond to of 110194
 
<<<One other (more conservative) strategy to consider on homies is the "sell-write" strategy. Short the stock and write the poot. With the high premiums some of 'em have, it could be a nice income strategy until things melt down for real....>>>

Well, I have some naked calls (which is the same as what you suggest) on TOL. I do not see any income. -ng-



To: patron_anejo_por_favor who wrote (29103)3/23/2005 8:04:52 PM
From: russwinter  Read Replies (1) | Respond to of 110194
 
<Short the stock and write the poot>

Actually that's my preferred strategy for shorting the homebuilders from here on out. I don't think they will just crater, but will be a drawn out, gradual drop. The puts, at least right now, have rich premiums to write.