DHI is plummeting after earnings today
Homebuilding stock D.R. Horton Inc (NYSE:DHI) is sinking today, following the company's disappointing fiscal fourth-quarter results and full-year guidance due to demand pressure. Earnings came in at $3.92 per share, missing analyst estimates of $4.17 cents per share, while revenue of $10 billion came in just below expectations of $10.22 billion.
At last glance, DHI was down 9.2% at $163.83, and headed for its largest single-day percentage drop since March 2020 -- the time of the market's infamous Covid-19 crash. Now trading at its lowest levels since mid-July, the stock is further removed from its Sept. 19 record high of $199.85. Since the start of the year, the equity is holding on to a roughly 6% lead.
D.R. Horton stock is on the short sell restricted (SSR) list today amid the volatility. It's also worth noting the security has seen eight times the options volume it typically sees at this point in the day. Calls are winning out, with 17,000 traded so far in comparison to 8,541 puts. The November 165 call and weekly 11/1 167.50-strike call are the most popular contracts, with new positions being opened at both.
DHI's 50-day call/put volume ratio of 1.39 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 94% of readings from the past year, showing a strong penchant for calls in the last 10 weeks.