Given the recent bearish options activity and concerns over high mortgage rates affecting builder confidence, I believe KB Home's stock is likely to decline in the short term, making it a prime candidate for a tactical short position as the housing market faces significant headwinds.

I just purchased $629.7K in KB Home puts with a strike price of $80 and expiration date of 2024-10-18. Despite recent upbeat Q2 earnings reports, significant bearish options activity and high mortgage rates suggest a potential downturn, making this a strategic move.