Here is an opportunity to short Toll Brothers, Toll Brothers is a luxury homebuilding company set to fall apart in our crumbling economy caused by the pandemic. This is an opportunity to short the company during these temporary choppy times. My strategy is to build my position $500 at a time. The put I will be buying has a strike price of $35 and expires 12/18.
Technicals also support the decline. You can see in the chart that the red cloud above the most recent candles is growing as this is an indicator of bears getting stronger. Theres also multiple sell signals on the Bollinger bands, while the MACD shows a history of bulls getting beat by the bears.
Nice charts Myandman, but does it tell us anything? TOL is about luxury houses with avg price 800KUSD, they are not impacted by possibly higher mortgage prices in the next year nor pandemics (workers usually are allowed to work in lock-downs). What does influence TOL net profit is the cost of purchased goods, iron, lumber. Those going up. Back to your chart, what in your opinion justify your short story?
Myantman101
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@Sal433616, TOL went down as predicted, this is a technical analysis that is not affected by fundamentals. Made a huge profit putting this during the short term. All my trades are short term.
eikman
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there is no way housing is going to crumble right now -- massive demand for homes, low rates for several years to come, banks are flooded with capital; so in fact it will be the exact opposite; I'm afraid you are going to lose. any lows are opportunities.
Myantman101
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@eikman, I sold out the day I posted this, I am actually focusing all my efforts on UN
Myantman101
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@eikman, Watch the video, speaks for itself. TOL was a good short.