OUCH! Yesterday WCI was up over 10% on twice the normal volume. About 5 million shares traded hands at about $17.5 which makes it nearly $100 million dollars worth. I was wondering who was buying up so much of this crap, and then I find out today thats its Bill Gates. His charity indiscriminately bought several builders stocks. This is a great time for the insiders to bail on the stock!
I was wondering whether to bail on the stock[close my short option positions] and eat my some small losses or to ride it out and incur either smaller losses or maybe much larger ones. However looking at the MACD it seems that just over $18 was the short term peak and its due for a pullback, which might offer a better place to exit. I could get more puts at this juncture but I’d rather just bail.
No point letting my ego get in the way.
If anyone can provide a better technical analysis on WCI, I’d love to hear it!