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.
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.
