The Volatility Trader
105 W. Monument Street
Baltimore, MD 21201
Thursday, August 24, 2006
Email – #172
Close Out Your KBH Position
Dear Volatility Trader Member,
After KB Homes (NYSE: KBH) announced last night that it is reviewing stock option grants, the stock quickly fell apart at the open this morning, and we were unfortunately stopped out of the play when shares just broke below the $40 level. Close your position in KBH immediately.
Elsewhere, broad tech sector weakness is working in our favor with Research in Motion (RIMM: Nasdaq). We’re keeping a close eye on this trade, and recommend moving the stop on this stock down to $80.01. Of course, we’ll keep you posted if any new developments surface.
Trade with purpose,
Mark Whistler
Current Portfolio:
Stock / Option: Research in MotionSept. $70 puts (RUP UN)
Current Price: $0.45
Comments: Hold. Close trade if stock moves above $80.01
Stock / Option: KB HomesSept. $45 calls (KBH II)
Current Price: Sell
Comments: Close out position.
