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Mike Khouw Sees Unusual Options Activity In D.R. Horton

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On CNBC's "Options Action," Mike Khouw spoke about unusually high options activity in D. R. Horton Inc (NYSE: DHI). He said the call options volume on Wednesday was two times the average daily call volume and the reason for that activity was a large purchase of the May 44 calls.

A trader bought 4,000 contracts of the May 44 calls for $1.81, which sets the breakeven for the trade at $45.81 or 4.28 percent above the closing price on Wednesday. Khouw explained that this is a roll of a previous bullish trade in the May 39 calls. The trader sold to close 2,300 contracts of the May 39 calls and almost doubled the position with the new purchase.

 

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Posted-In: CNBC Mike Khouw Options ActionOptions Markets Media