Contrarian Play

Discussion in 'Stocks' started by drsteph, Sep 19, 2007.

  1. 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?
  2. timbo


    Rates monotonically increasing or decreasing are a new thing. Being contrary could cost you.
  3. harkm


    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.
  4. +1 pure spec. play.