Closing our MTH put position to manage risk and free up capital.
Homebuilders have been trading lower alongside the rise in interest rates. While this move looks to be overdone (and homebuilder stocks appear to be great values), MTH has broken below our $82.50 strike price.
We’ll use today’s bounce to close out this trade. And thanks to the rebound, we’ll be able to get out at a better price than we would have taken late last week. Homebuilders will continue to be on my watch list for new income plays.
By closing this trade out early we’re taking a loss. But we’re also managing our risk and freeing up capital that can be used for new income plays that are currently working well.
- Buy (to close) our MTH May 20th $82.50 Put
- Limit $6.30 or less
- 12:41 Executed
- Bot MTH May 20th $82.50 Put @ $6.10