KB Home (KBH) NewsBite - KB Home Up on Home Sales Data

Posted on Monday, March 24, 2008 1:16 PM

KB Home (KBH) opened at 25.66. So far today, the stock has hit a low of 25.66 and a high of 28.34. KBH is now trading at 27.75, up 2.49 (9.70%). The stock hit its 52 week high of 49.34 in March and set its 52 week low of 15.76 in January. KBH has been dropping for most of the past year. Shares of housing stocks have been surging today on data showing that sales of existing homes posted an unexpected increase in February. The National Association of Realtors said that sales of existing homes rose by 2.9 percent in February to a seasonally adjusted annual rate of 5.03 million units, while analysts had been expecting a small decline. Technical indicators for the stock are bullish and steady while S&P gives KBH a negative 2 STARS (out of 5) sell rating. If you’re looking for a hedged play on this stock, consider a July bull-put credit spread below the $15 range. KBH stock could fall up to 45.9% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]