Taylor Morrison Remains A Solid Candidate For The Seasonal Trade On Home Builders

2026-02-26 07:16:39 ET

Taylor Morrison Home Corporation ( TMHC ) has essentially gone nowhere since I wrote about it as my top pick for the bearish-to-bullish reversal in the stocks of home builders . That reversal lasted just another few more weeks before builders sank into another bear market (based on price levels for the iShares US Home Construction ETF (ITB)). That fresh sell-off was timely as it provided a good risk/reward entry for the seasonal trade in home builders . Since accumulating shares in TMHC, I traded against the current price range, mainly by selling call options near the highs. Last week, 40% of my position was finally called away. This week, I started buying shares again after TMHC fell as much as 4.5% in the wake of the President reiterating his call for a ban on institutional purchases of single-family homes. More price discounts could be on the way given the tepid feel of TMHC’s latest earnings ....

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