We are shorting Z (Zillow) the real estate platform as we believe that the court decision made yesterday from the lawsuits brought by home sellers will have an adverse effect on the future financial condition as well as the results of operation of Zillow.
Buyers and agents rely on this platform and this court decision will significantly cut the marketing budgets of every real estate broker and partners, as brokers’ commission could be nearly cut into half as a result of the litigation, thus directly affecting this platform.
As momentum traders, we believe the sell off that happened last Friday in Z (Zillow) will continue as the market is still trying to assess how significant the effect will be. We are looking at 38.91 support to cover the position.
In addition to this, we have an overnight long put March 22, 2024 expiry position with a 45 strike price with the plan to close the contracts before expiry. The 45p strike premium cost us a 62/contract. We think there is a high probability chances that the price of this stock will still slide further down.
PS
As a trader, from time to time we have to resharpen ourselves in order to stay highly focused and motivated.
To review your psychology – read Chapter 23 from page 271 -284 “The Disciplined Trade by Mark Douglas”
It is important to keep ourselves physically, mentally and spiritually checked in order to keep our edge in the market. I think that’s the most important and a very hard to master – ourselves. This is what we need to survive the ever changing market.
See you in our next play,
B+M Trader