As hoped, Toll Brothers (TOL) pulled back from massively overbought conditions, falling $1.50 on the day. That move sent our TOL December 36 puts to $3 – a 25% gain from a $2.40 entry.
We’re recommending that sell to close just half of the position today to secure partial gains. Hold the second half. We’d like to see TOL sub-30 before we exit the second half.