Position Update: PHM, AFAM – January 23

PHM snapshot - 2009-01-23

Click to enlarge.

Okay, once I get going with things a bit more, I’d like to at least make bi-daily updates, but I guess I first need to get in a groove here. As a quick pre-noon glance, the short puts on PHM and AFAM are still holding up.

Pulte Homes provided a bit of a concern on Wednesday. There was a fairly decent dip down into the 9.75 range, but things worked back up above 10.00 before the close. The past couple days have remained rather flat, which is almost ideal for our trade, although some upticking wouldn’t be upsetting, either. The one thing we’ll have to watch out for is Pulte’s earning report that’s due to come out Feb. 4. We could see some interesting action there. However, as I indicated in my last post, I think there’s still opportunity there even if we get exercised on the puts.

Oddly enough, our friend Almost Family has had the more negative move since the Presidential inauguration. It’s dropped roughly 2.50 in the past 3 days of trading. We’re still well above the $30 strike on the short puts, so no immdiate concern. I can somewhat make out a reasonable support around the $35-mark (plus it’s a $5 increment, which helps), so certainly no concern at this point. I will have to keep an eye on my margin requirement for this trade since I got a bit of a break initially with such a large spread on the strike and actual price.

Click to enlarge.

Click to enlarge.

Only 28 more days until expiration. Happy Friday everyone!

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