I took profits in KBH today by buying back the shares I borrowed. Back in January, I argued that housing could suffer from
a gauntlet of harm originating from rising interest rates, the elimination of first-time homebuyer tax credit, unemployment/weak economy, and decreased foreign funding.
At the time, I shorted a handful of homebuilders, including KBH at $15.05 per share. Since then, the stock has fallen by a third, and I covered KBH at $9.71. This traded yielded me a 33.6% gain in less than six months. I still retain open positions in NVR (long) and RYL & MHO (short) from the January trade.
| 1/24/2011 | KBH | short | 75 | 15.05 | $ 1,118.77 | ||||
| 5/19/2011 | KBH | dividend | 75 | 0.06253 | $ (4.59) | ||||
| 7/8/2011 | KBH | bought to cover | 75 | 9.71 | $ (738.20) | ||||
| $ 375.98 | |||||||||
