Decoding D.R. Horton's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bearish stance on D.R. Horton DHI.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with DHI, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 12 uncommon options trades for D.R. Horton.

This isn't normal.

The overall sentiment of these big-money traders is split between 25% bullish and 75%, bearish.

Out of all of the special options we uncovered, 8 are puts, for a total amount of $375,817, and 4 are calls, for a total amount of $225,842.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $100.0 and $135.0 for D.R. Horton, spanning the last three months.

Insights into Volume & Open Interest

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for D.R. Horton's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of D.R. Horton's whale trades within a strike price range from $100.0 to $135.0 in the last 30 days.

D.R. Horton 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

About D.R. Horton

D.R. Horton is a leading homebuilder in the United States with operations in 118 markets across 33 states. D.R. Horton mainly builds single-family detached homes (over 90% of home sales revenue) and offers products to entry-level, move-up, luxury buyers, and active adults. The company offers homebuyers mortgage financing and title agency services through its financial services segment. D.R. Horton's headquarters are in Arlington, Texas, and it manages six regional segments across the United States.

After a thorough review of the options trading surrounding D.R. Horton, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of D.R. Horton

• With a volume of 932,761, the price of DHI is down -0.76% at $126.51.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 57 days.

Expert Opinions on D.R. Horton

Over the past month, 4 industry analysts have shared their insights on this stock, proposing an average target price of $130.75.

• Reflecting concerns, an analyst from Jefferies lowers its rating to Hold with a new price target of $119.
• An analyst from Keefe, Bruyette & Woods has decided to maintain their Market Perform rating on D.R. Horton, which currently sits at a price target of $148.
• Maintaining their stance, an analyst from RBC Capital continues to hold a Underperform rating for D.R. Horton, targeting a price of $116.
• An analyst from Raymond James has decided to maintain their Outperform rating on D.R. Horton, which currently sits at a price target of $140.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest D.R. Horton options trades with real-time alerts from Benzinga Pro.