🚗Someone Goes BTFD on Homebuilders

[] [The daily rundown of everything happening at Option Pit.]( [.]( MARK-et Open Hey OP Crew, Interest rates going up? Apparently this trader doesn’t care! [ They bought upside call spreads and sold puts for a debit. The net cost of the trade was .80, but there is heavy margin cost on the short put. The trade is in D.R. Horton Inc (Ticker: DHI), and I saw a similar one in Toll Brothers Inc (Ticker: TOL). Recent highs in DHI is $123, and this trader thinks it can break through between now and Aug 25th expiry. Should be an interesting area to watch … Let’s Go! [/campaigns/org775804783/sitesapi/files/images/774695510/ag (2).png] [ - EASY BUTTON: VXX Jul14 24.5/27 strangle closed for a 50% gain - POWER INCOME TRADER: SLV Jul21 21/20.5 put vertical spread closed for a 46% gain Want to find YOUR winning fit? Give our Customer Care Team a call at 1-888-8772-3301 Monday-Friday from 9 a.m.-5 p.m. EST. Or email them anytime at [support@optionpit.com](mailto:support@optionpit.com?subject=) VIX Edge: A Killer Setup The Option Pit VIX Traffic Light Is Red: Volatility is likely to slide. The VIX had a nice move on Thursday, moving up 1.26 points to 15.44. While this was well off the highs, the fact that VIX woke up a touch is worth noting. SPX at its lows was down more than 60 points, but ended the day only down 35. Still, the SPX is showing some teeth in its daily movement … This continues to set up opportunities for traders in this 0DTE environment that we would have never seen in the past. I see a killer set up right now and I want you to know about it. [Click here to find out what it is.]( - Mark Pit Report: META Chart Analysis The big news in Meta Platforms (Ticker: META) is that they have created an alternative or a competitor to Twitter. It’s called Threads and it is built on top of Instagram so it is automatically linked to those accounts and you have to have an Instagram account to have a Threads account. It has 30 million sign ups in its first sixteen hours. According to CNBC, “Threads represents Meta’s attempt to capture the wave of users who have left Twitter amid the often unpredictable ownership of Elon Musk.” Hmm, not sure how we get some good dialogue going if each side is on its own platform. Let’s look at the charts. [Click here for my full analysis.]( - Licia Power Moves: Bidenomics! Joe Biden watched a big campaign promise go down the drain last week. On Friday, the Supreme Court shot down his student debt relief plan. Republicans had decried the fairness of the plan and its $400 billion price tag. The loss is a hit to a key campaign promise. But don’t think a little bad news will deter Biden. He’s like a honey badger – He Don’t Care! Biden has gone on the offensive touting “Bidenomics!” He believes that his administration has “a record to run on … And most importantly, we're not only changing the country, we're transforming the country.” What, exactly, is “Bidenomics” you ask? According to a top administration official, it is “an economy that in effect could have been worse after the pandemic.” Well, that’s a hell of an unmeasurable bar. It also ignores sky high inflation, rate hikes, etc., etc., etc. The silliness of Bidenomics does not mean that trading opportunities are not being created. Manufacturing, supply chains, and infrastructure are all bright spots. [Click here for some of my ideas.]( - Frank Profits In Pumps: A Double Signal As you may already know, my favorite form of technical analysis is spotting a change in trend signal on the stock charts. Check out this one: [ After a really nice rally, a small pullback and a continuation rally, there are two change in trend signals occurring here. Do you know what they are? If you said a double top and a doji you would be correct. The first time the stock had reached this high it backed off creating a resistance level. Now it has revisited this area trying to break out above it and not succeeding, creating a double top. The doji is created when the bulls and bears have battled it out over the whole session without a clear winner. The opening and closing price of the session is very near the same price creating a small or nonexistent real body. This produces uncertainty in the market and thus a possible change in trend. [I’ll tell you what the stock is and where it’s headed when you click here.]( - Licia OPTION PIT GLOSSARY [( There are plenty of terms in the trading world that need defining. The [Option Pit Glossary]( is here to help. Today's phrase is: Implied volatility (IV): The interpolated volatility (or forward volatility) of a stock or option, reflected in the option’s price. [( DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk. DISCLAIMER: OPTION PIT LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute the solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Want to change how you receive these emails? 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