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turbo6bar turbo6bar is offline
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Join Date: Apr 2000
Location: volunteer state
Posts: 5,620
OK, I gots nothing to hide.

Streetracks Spider Homebuilders ETF, ticker XHB

XHBUL, Sept 06, paid $1.20 and $1.45 per contract, $38 strike
XHBUI, Sept 06, paid $1.35 and $1.45 per contract, $35 strike
XHBXJ, Dec 06, paid $1.25 and $1.80 per contract, $36 strike

Citigroup
CUI, Sept 06, paid $0.45 per contract, $45 strike

I plan to dip into more Homebuilder put options on any signs of a bounce, and I will begin liquidating the Sept put options in about 6-8 weeks, and grab some Dec puts. Take a look at the components of XHB. Pull up charts for the individual builders. There is still plenty of sky left for the freefall. For example, LEN is $45ish now. In Jan 03, it was a $25 stock. TOL is $27 now. It was a $10 stock in Jan 03. KBH is $47 now, $20 in Jan 03. SPF is $26, and $12.50 in Jan 03. Of course, I don't expect to see these stocks drop in a matter of months (making my current options gold), but I can certainly nibble on future options as they become available.

Be aware, this is all play money. I am perfectly aware the market may kick my ass, but right now I feel the odds are with me. If the economy hiccups, though, I may throw some serious cash down.
Old 06-09-2006, 07:56 PM
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