DHI Options Reveal Investment Opportunities Ahead of Expiration

Horton Inc investors see new options as investments shift. The DHI April 17 contracts present opportunities that could influence share prices depending on performance metrics.

Date: 20-02-2025

AI Rating: 7

Options Overview
The report highlights new options for Horton Inc (DHI) with contracts expiring on April 17. Investors can benefit from new put and call options, reflecting strategic investment opportunities.

Put Options
The put contract at a $125.00 strike price has a current bid of $5.70. By selling-to-open this put, investors would incur a cost basis of $119.30 per share, representing an attractive alternative to the current trading price of $127.24. If the put expires worthless, it could yield a 4.56% return on the cash commitment, or an impressive 29.74% annualized return.

Call Options
The call contract at the $130.00 strike has a bid of $6.10. By executing a covered call, an investor selling at this strike could achieve a total return of 6.96% if the stock is called away at expiration. If this contract expires worthless, it could add an extra 4.79% to returns or 31.27% when annualized.

Implied and Historical Volatility
Implied volatility for the put contract stands at 39%, while for the call contract it is at 38%. Historical volatility is measured at 33%, showing the market's expectation of the stock’s volatility acting positively on option strategy selections.

Conclusion
The information around options trading provides insights into investor sentiment and possibilities for DHI's stock price movement, especially considering the substantial yield potentials and market strategies involved.

Stocks: DHI