NEW BEARISH Plays
MDC holdings - MDC - close: 29.18 change: -0.47
Stop Loss: 30.35
Current Gain/Loss: unopened
Entry on August -- at $--.--
Listed on August 08, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 943 thousand
New Positions: Yes, see below
Why We Like It:
MDC is part of the residential construction industry. Many of the big players in the group are sinking fast.
MDC seems to be underperforming its peers and just broke down to a new low for the year. We suspect this trend will continue.
Keep in mind that the homebuilders have been volatile. I am suggesting small positions. You may want to consider just buying puts since your risk is limited to the cost of the put option. We're suggesting small positions at the opening bell tomorrow. Our target is $25.50.
*open small bearish positions on Friday morning*
Suggested Position: short MDC stock @ (the open)
- (or for more adventurous traders, try this option) -
buy the Sep $30 PUT (MDC1321u30) current ask $2.00