I covered my puts on WCI today. Carl Icahn put in a bid for $22 a share when it was trading at $19.80 yesterday. So in today’s market where every was down, WCI was up 15%!!
I had enough second guessing the home builders. The real action was in the Lending stocks and I missed most that action. Anyway, CountryWide’s CEO was on CNBC today, lying about how great business was for home builders and that his company would do well by taking market share from all the sub-prime lenders. I was thinking of shorting the stock last week and I didn’t and its down 10% since then. I think this subprime malaise will spread to the prime lenders eventually.
Anyway I bought some June puts. Hopefully they’ll pan out. If they lose 50% of their value I’ll close them out. I’ll keep you posted.