Beazer Homes Inc. (BZH)

[Zephyr]

20:09:31 BZH WSJ(8 26) Options Report: Bets On Beazer


(From THE WALL STREET JOURNAL)
By Brendan Conway

Options traders looked past a glum reading on home sales as they took bullish
positions on a number of home-builder stocks.

One of the companies in focus was Beazer Homes USA, whose shares have fallen
by nearly a half since May. Traders scooped up more than 4,000 $5 November call
options that make money if the stock gains at least 41% in the next three
months. Beazer's shares gained 17 cents, or 4.9%, to $3.64.

The same investors also appeared to sell a similar number of $2.50 November
Beazer puts in a bullish "risk reversal" trade. Selling puts allows traders to
collect a premium on the view that the stock is unlikely to fall below certain
levels, and is worth owning if it does.

Home-builder stocks were broadly higher Wednesday, shrugging off data showing
July new-home sales dropped to a record low. A surprise profit by Toll
Brothers helped.


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08-25-10 2009ET

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20:09 082510