DHI Descending Channel Break for Long Entry

2021年11月9日

Description
DHI has been working this descending channel since hitting an ATH in May of this year, and off the earnings we may be seeing a break out.
A close > 94 triggers a long.

Using a call debit spread, because profits are always limited by time.
Will look to enter at EOD.

Call Debit Spread
Tentative Levels on Chart
SL is a daily close back in the channel.
*Stops based off underlying stock price, not mark to market loss

The Trade
BUY
12/3 95C
SELL
12/3 105C

R/R & Break-evens vary on fill.
The long call is placed ITM due to limited strikes but also offers good downside protection.
The short call is placed at the ATH. If DHI runs to ATH and holds, I'll look to roll the spread up.

Manage Risk
Only invest what you are willing to lose

2021年11月9日

交易進行

Went for the 11/19 96/105C's instead filled @ 2.4.
Max Loss < 96
Break-even @ 98.40
Max Profit > 105

2021年11月16日

交易進行

Increased position size by 60%.

2021年11月17日

交易進行

Closed out the Increased portion @ +150%.

2021年11月18日

手動結束交易

Closed out the initial spread today because it expires tomorrow and will begin to trade at parity.
Filled @ 6.33, +164%.
The price target still has not been met, so I am looking to use profits to roll into next week OTM Calls.

2021年11月18日

交易進行

Filled 11/26 104C's (the initial price target), for .83.

2021年11月19日

交易結束：目標達成

DHI hit the target today and retreated, so I went ahead and closed out the long calls.
Filled @ .97, +17%.
I will be looking for a break over the ATH @ 104 for additional upside.