Sec Form 4 Filing - CABLE WADE H @ WILLIAM LYON HOMES - 2006-07-18

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person CABLE WADE H 2. Issuer Name and Ticker or Trading Symbol WILLIAM LYON HOMES [ WLS] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) X __ Director _____ 10% Owner X __ Officer (give title below) _____ Other (specify below) President and COO (Last) (First) (Middle) C/O WILLIAM LYON HOMES, 4490 VON KARMAN AVENUE 3. Date of Earliest Transaction (MM/DD/YY) 07/18/2006 (Street) NEWPORT BEACH, CA92660 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 07/18/2006 J( 1 ) 226,908 D 0 I As Co-trustee of the Cable Family Trust

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Prepaid Forward Contract ( 1 ) 07/18/2006 J( 1 ) 1 ( 1 ) ( 1 ) ( 1 ) Common Stock 226,908 ( 1 ) 0 I As Co-Trustee of the Cable Family Trust

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other CABLE WADE H C/O WILLIAM LYON HOMES 4490 VON KARMAN AVENUE NEWPORT BEACH, CA92660 X President and COO Signatures Wade H. Cable 07/20/2006 Signature of Reporting Person Date

Explanation of Responses:

( 1 )As previously reported, on September 7, 2005, the reporting person and his spouse, as trustees of the Cable Family Trust Est. 7-11-88 (the "Cable Trust"), entered into a variable prepaid forward contract (the "Forward Contract") with an unrelated third party relating to up to 247,708 shares of Common Stock. On July 18, 2006, the parties effected the delivery of the remaining 226,908 underlying shares to the purchaser pursuant to the contract. In addition to the previously reported prepayment for the shares, the Cable Trust received a total of $956,699.32 as interest in light of the early termination of the agreement.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

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