New Options for Horton Inc Expected to Influence Stock Price

New options for Horton Inc (DHI) come into play, inviting investor interest. The put and call contracts could present attractive trading strategies, influencing price dynamics and investor sentiment.

Date: 27-03-2025

AI Rating: 6

Put Option Analysis
The analysis mentions a new put contract for Horton Inc at a $129.00 strike price. Selling to open this contract effectively sets a cost basis of $124.30 per share, reflecting a 1% discount against today's trading price of $130.44. Should the put expire worthless, it offers a yield of 3.64%, or 30.93% annualized.

Call Option Analysis
The call option at a $134.00 strike price allows investors to potentially sell shares at a premium with a total return of 5.95% if executed, excluding dividends. The current likelihood that the call option may expire worthless is 58%, providing an alternative return opportunity without the loss of underlying stocks.

Volatility and Investor Sentiment
The implied volatility for both contracts is reported at approximately 37%, while actual trailing volatility stands at 33%. This difference indicates investors' expectations for future price swings and may add an additional layer of strategic consideration.

Stocks: DHI