Pete Najarian likes Standard Pacific (SPF) because option investors are buying June 22, June 25 and July 25 calls. That suggests to Pete that the housing market is near a bottom.
Eric Bolling couldn’t disagree more. He reminds DR Horton (DHI) CEO had said all 12 months are going to “suck” for his company. Homebuilders are down 9% year to date, he notes.
Jeff Macke says Hank Paulson is talking his book.
Look at a company like Dell (DELL), Jeff says. The fundamentals aren’t getting better but investors can own the stock as a trade. It’s the same thing for the homebuilders. He thinks they go higher from here and that’s a trade.
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Trader disclosure: On May 22, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (SWY); Najarian Owns (MDT), (STI); Bollings Owns Coffee, Sugar, Gold, Silver, March Natural Gas Futures, Is Short April Natural Gas Futures