New Home Sales Up a Whopping 27% In March, November BZH Call Rips 59%, Stock Testing Resistance, Beazer Downgraded To Hold By Citigroup Citing Valuation

Someone positioned well buying those 3,000 BZH 7.50 Calls on Thursday for $0.63 before this release.  On Friday it closed up 59% to $1.0 (chart below) with positive volatility from the new home sales release and BZH rip.  The trader also sold the $5 BZH puts.  Watch daily option activity at  Here is the new home sales release from  *Update: It appears that Citigroup downgraded Beazer Homes on 4/22 to "hold" (from buy) citing valuation. It reached Citi's price target of $6.25. For proof I embedded the update from Market News Video.


Sales of new single-family houses in March 2010 were at a seasonally adjusted annual rate of 411,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 26.9 percent (±21.1%) above the revised February rate of 324,000 and is 23.8 percent (±18.7%) above the March 2009 estimate of 332,000.

The median sales price of new houses sold in March 2010 was $214,000; the average sales price was $258,600. The seasonally adjusted estimate of new houses for sale at the end of March was 228,000. This represents a supply of 6.7 months at the current sales rate."

BZH November 2010 $7.50 Call Move (snapshot courtesy of optionsxpress)