10 Red Carpet Option Trades

Are Your Investments Going to Fail You This Year?

SPDR S&P Homebuilders (XHB)

By Michael Shulman

One movie review described Best Picture nominee “Up in the Air” as an “ode to recession-hit US.” Leading man George Clooney is paid to travel around
the country and lay off other companies’ workers, and business is quite lucrative given the tough economic times.

And, as much as Wall Street would like you to believe we are out of the woods, we’re not. One of the reasons is that the housing market is still
a long way from recovering. It’s simple enough: When people don’t have jobs, they can’t buy houses.

Given recent results and data, including January’s decline in existing home sales, I’d say you should think about shorting the homebuilders via put
options on the SPDR S&P Homebuilders (XHB).

Learn which other four sectors you
should short.

Next: Best Trade Nominee #10