Investing
Major Volume Alert in D.R. Horton Options Trading (DHI, HOV, LEN, KBH, TOL)
Published:
D.R. Horton, Inc. (NYSE: DHI) rarely makes a splash on the most active option contracts. So when you see a contract volume of 70,186 contracts traded in the April 2012 $14.00 Put options it is a bit of a wonder. The prior open interest was a mere 511 contracts.
With a move higher of 4.1% to $14.57 today. investors need to understand that this options contract volume represents 7 million shares of stock on a fully leveraged basis. That is a full day’s worth of an average trading volume.
The 9% gain in Hovnanian Enterprises, Inc. (NYSE: HOV) has the homebuilders on the move, but this one stands out above and beyond normal in options trading.
Lennar Corporation (NYSE: LEN) and KB Home (NYSE: KBH) appear to have above normal trading volume in its options, but not by much when you consider the D.R. Horton put volume. Toll Brothers Inc. (NYSE: TOL) is up 3% in its stock but the options trading is very muted today.
Someone has made some big hedging in D.R. Horton by the looks of it. Stay tuned.
JON C. OGG
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
