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D.H. Horton sees volatility play at highs

Chris McKhann (chris.mckhann@optionmonster.com)

A volatility trader is targeting D.R. Horton as the homebuilder sits near multi-year highs.

optionMONSTER systems show that a print of 3,000 January 22 puts traded for $1.74, apparently sold for the bid price at the time. The open interest at that strike was 1,175, so this is a new position.

Seconds later the biggest block of DHI stock changed hands as 87,000 shares traded for $24.881. That is the exact delta of the options, so the overall strategy appears to be a volatility play rather than a directional trade. (See our Education section)

DHI is flat on the day at $24.87 after hitting a six-year high at $25.56 on Wednesday. Shares have doubled since the end of 2011.

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