Well I’m no pro and I’m making a killing shorting homebuilders, and I expect to make a LOT more with the Puts. The short squeeze is not nearly as dangerous as you make it out to be. Yes it can make you nervous at times, but it only causes short term spikes. As long as you don’t overdue it on the shorts to leave a nice buffer for these spikes, you are fine.
I’m not into day trading like a lot of these yahoos. But again their games only cause short lived spikes. As long as you go in it for the long run and leave some buffer you can’t go wrong. I said it once and I’ll say it again. Does anyone on this blog truly believe that TOL or KBH stock has any chance of being worth more in two years than it is today? Of course not!
So don’t be so conservative Poway, you’ve gotta have several hundred Gs banked after selling your house. Why not pull a little of that out from under your mattress and make some real money?