While holding a short position and being long on indices good economic news is helpful in driving the price higher and away from our strikes.
“There were hardly any indications before today, but the spring housing surge is here. Today’s housing starts & permits report is one of the very strongest on record and with starts soaring 20.2 percent in April to a much higher-than-expected annual rate of 1.135 million and with permits up 10.1 percent to a much higher-than-expected 1.143 million. Both readings easily top the Econoday high-end forecast of 1.120 million for each. The gain for starts is the best in 7-1/2 years with the gain in permits the best in 7 years.”