With a small market decline today, along with weak housing data, I decided to take some profits on my July ITB 17.50 puts. I sold 2 of them for $5.60 each.
I still believe housing pain is yet to come as I continue to hold eight more put options on ITB. Below is my trade history of ITB since I first established a negative position in February 2009. The two red boxes highlight the culmination of today’s trade while the green shaded cells are the put options that I still hold.
While I haven’t played this as tactfully as I would have liked, I am managing to eek out nice gains. The thesis remains sound, and I continue to believe that my positions against homebuilders will payoff.
