We're Buying Builders

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The evidence keeps building for lower rates — and I think it would be irresponsible not to add some exposure to homebuilders here.

The group has been quiet for a while and has largely sat out from the rally off the April lows. 

However, these stocks are coiled tightly at a key level, and I think they’re ready to resolve higher.

I like playing this theme through $DHI. 

DR Horton is one of the strongest homebuilder stocks over the long term, and the chart has scoop ‘n score written all over it.

Some homebuilders are starting to move out of their coils now, and I think a big reaction leg will follow.

I’m buying the $DHI 8/15 $140 calls for approximately $2.50 - $3.00 per contract.

I will pay up to get into these, but I’m looking for the stock to come in a bit throughout the day, and hoping to add more contracts closer to $2.50.

Steve