Major Volume Alert in D.R. Horton Options Trading (DHI, HOV, LEN, KBH, TOL)

Photo of Jon C. Ogg
By Jon C. Ogg Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

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

Contact [email protected] for any questions or corrections.

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Continue Reading

Top Gaining Stocks

META Vol: 40,760,422
KMX Vol: 2,288,021
WY Vol: 6,523,553
SBAC Vol: 1,443,801
NVDA Vol: 148,249,982

Top Losing Stocks

MRNA Vol: 9,176,778
CTRA Vol: 73,319,495
CRWD Vol: 9,269,567
DDOG Vol: 5,135,556
EPAM Vol: 1,164,561