DHI Analyses

D.R. Horton Inc. (DHI)

DHI publishes earnings onWednesday before the opening bell.

I shall use options that trade for the last time 10 days later, on Aug. 4.

Implied volatility stands at 27%, which is 2.9 times the VIX, a measure of the volatility of the S&P 500 index.

DHI’s IV stands in the 50th percentile of its annual range and the 81st percentile of its most recent broad movement.

The price used for analysis was $36.63.

Decision for My Account

I’m passing on the trade without further analysis because of the grid structure near the at-the-money point, which have 5 delta gaps from the money.

By Tim Bovee, Fukuoka, Japan, July 25, 2017

Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

License
Creative Commons License

All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Based on a work at www.timbovee.com.

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