Sure, housing is recovering. And I’ve got a bridge to sell you.
After running up, home builders are taking it on the chin again today, as housing starts fall 14.4% to 956,000 from July’s total of 1.117 million.
Home builder stocks – like Lennar (LEN) – are down $1 today. That gives us a respectable gain on our LEN November 40 puts, which last traded at $1.70. If you’re happy with the gain, sell to close half of the position today.
We’ll hold the second half a bit longer because we expect for LEN to refill a bullish gap at $39.35.