Have I completely lost my mind, or should I start buying way OTM calls on Mortgage insurers and homebuilders to leg into straddles on these things? One heck of a contrarian play.... too late to buy more OTM puts and consensus is so bad that I have to wonder. Anyone else think I've lost it besides myself?
I wouldn't buy out of the money calls but the homebuilders might be good for a month trade here. These shorts need a little scare.