• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Trade Alert - (DHI) October 18, 2024 - EXPIRATION AT MAX PROFIT

Trade Alert

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.


Alert

 

 

Trade Alert - (DHI) – EXPIRATION

EXPIRATION of the DH Horton (DHI) October 2024 $165-$175 vertical BULL CALL debit spread at $10.00

 

Closing Trade - NOT FOR NEW SUBSCRIBERS

10-18-2024

expiration date: October 18, 2024

Portfolio weighting: 10%

Number of Contracts = 12 contracts

I love “everything” bull markets because it makes me look smarter than I actually am.

I am sending this alert out now so I don’t overwhelm you with too many Maximum profit trade alerts at the 4:00 PM close of expiration day today, OCTOBER 18.

Stock players who bought the (DHI) shares, keep them, which probably have a 100% move in them over the next three years.

You don’t have to do anything with this expiration.

Your broker will automatically use your long position to cover your short position, canceling out the total holdings.

The entire profit will be credited to your account on Monday morning, October 21, and the margin freed up.

Some firms charge you a modest $10 or $15 fee for performing this service.

The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized, and rock solid.

As a result, you get to take home $1,440 or 13.64% in 24 trading days. Well done, and on to the next trade.

The Federal Reserve Open Market Committee is expected to cut interest rates by 25 basis points at every meeting until June. That also invites a weaker US dollar and stronger foreign currencies, gold and silver.

The bull case for homebuilders is very simple. They are Catching on Fire with the prospect of falling interest rates. The US has a structural shortage of 10 million homes with 5 million Millennial buyers. Homebuilders have been underbuilding since the 2008 Great Financial Crisis, seeking to emphasize profits and share buybacks over to development land purchases.

Buy (DHI), (LEN), (PMH), (KBH) on any dips. (DHI) is the largest of these, with a market capitalization of $63.5 billion.

For details about DH Horton, please visit their site at https://www.drhorton.com

This was a bet that the (DHI) would not fall below $175.00 by the October option expiration today.

Here is the specific accounting you need to close out this position:

EXPIRATION of 12 October 2024 (DHI) $165 calls at………….………$27.23

EXPIRATION of short 12 October 2024 (DHI) $175 calls at…….……$17.23

Net Proceeds:……………………………..……………..………….…...............$10.00

Profit: $10.00 - $8.80 = $1.20

(12 X 100 X $1.20) = $1,440 or 13.64% in 24 trading days.

 

 

 

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://www.madhedgefundtrader.com/wp-content/uploads/2016/02/Alert-e1457452190575.jpg 135 150 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2024-10-18 11:20:322024-10-18 11:20:32Trade Alert - (DHI) October 18, 2024 - EXPIRATION AT MAX PROFIT

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: October 18, 2024 Link to: October 18, 2024 October 18, 2024 Link to: October 18, 2024 Link to: October 18, 2024 October 18, 2024
Scroll to top