A bearish bet on homebuilders that profits if the consumer starts to weaken

Tony Zhang is worried about the consumer and presents an options trade to capitalize on it.

With some major consumer discretionary names trading closer to their 52-week lows even as equity markets print new all-time highs, there are growing risks that the consumer is weaker than the economy suggests. Recent weakness in the homebuilders, which are dependent on the consumer, suggests that they may be heading in the direction of the discretionary sector. This presents an opportunity to add short exposure via options.

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