Trade Alert

One similar to our successful Redfin trade last week.

A 1DTE Options Trade

Last week, we bought puts on Redfin Corporation (RDFN) expiring on Friday, and exited that trade for a 29% gain in two days. Today, we bought puts expiring tomorrow on a similar stock in a struggling industry, one with these abysmal fundamentals.

Like Redfin last week, this company is releasing earnings the day before our options expire (after today’s close, in this case). So, if those earnings surprise to the upside, we could lose money on this trade. But, like Redfin, this company is in the real estate industry, which, according to Redfin yesterday, didn’t do well in the 2nd half of 2022 (“U.S. home values declined by $2.3 trillion in 2nd-half of 2022, Redfin says”).

Before we get to today’s trade though, a couple of quick notes on two other trades:

1. I have a limit order open on another bearish bet, so expect a trade alert on that if and when that gets filled.

2. Our leveraged bullish bet on natural gas from earlier in the week is up 34% as I type this.

Now for the details on today’s trade.