Daily Status 2007-12-06
Thursday, December 6th, 2007Account Value $924.57
Money $409.57
Securities $515.00
As of 2007-12-06 03:00:03 PM PST
Short squeeze on homebuilders today after Bush’s announcement of a rate freeze of certain ARMs. Bad news for the current puts on PHM. I don’t know why this would bring up home builder stock. It’s likely a panic for the shorts.
Ultimately I do not see how this can help the builders. This will keep prices in certain areas artificially inflated. The higher price and the difficulty in borrowing money (for a new buyer) will still keep new homes on the books. This move by the government may have added fuel for shorting. As such, I’ve doubled the short position in PHM. I’m holding steady with the other positions and still have about 40% in cash in case new opportunities arise. Two PHM puts Jan 08 @ $10 for $0.55 each.
Tradeking may not be calculating things correctly. And some items like the two added options did not show on the order status page. I’ve included as much info as possible in the screenshot today.
