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[Cirrus]

I mentioned several weeks ago that the homebulders frequently experience 'unusual activity and volatility' around OPEX. It's usually a run to the upside--check out all the 2007 OPEXs for the evidence. Most of these issues have huge amounts of open puts--ITM and OTM. Thus, 'manipulating' their expiration price is of great economic benefit. They also have plenty of short interest. This always makes for interesting trading into OPEX. Will this one be differnt? BZH is one to watch WRT this as they have a huge amount of open puts through Jan 08 compared to equity float.

Edited by Cirrus, 12 June 2007 - 10:39 AM.