Hat tip to
Crimson Mind for the information. 25,000 January 2010 $10 puts just hit the tape. Not sure of the exact nature of the trade (hedging, spec short pocketing change or spec buy) but if $XHB (Homebuilder ETF) violates support here it could retest lower levels. It's trading at $11.42 right now. This is looking out 7 months. I will continue to monitor housing data (Housing Analysis June 3 -
Housing Starts, Building Permits, Pending Home Sales). Will
WCI Communities and TOUSA be the only public building casualties? Unless I am missing one. Also read
this after reading the
WCI post. I'm wondering when there will be more M&A in this space.
XHB Jan 2010 Option Chain (Yahoo Finance)
XHB 6 Month Chart
Also here's a look at
Hovnanian trading activity and financials on March 22. **Also for the sake of tomorrows expiration, 10,066 June $10 calls traded today with 2,560 open. The contract closed at $1.50 up 0.11 and XHB closed at $11.43. Hmmmm..
