DR Horton (DHI) Offering Possible 34.77% Return Over the Next 17 Calendar Days

DR Horton's most recent trend suggests a bullish bias. One trading opportunity on DR Horton is a Bull Put Spread using a strike $75.00 short put and a strike $70.00 long put offers a potential 34.77% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $75.00 by expiration. The full premium credit of $1.29 would be kept by the premium seller. The risk of $3.71 would be incurred if the stock dropped below the $70.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for DR Horton is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for DR Horton is bullish.

The RSI indicator is at 59.87 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for DR Horton

A Trio of Stock Picks for the Value Investor
Sun, 29 Nov 2020 15:18:50 +0000
These businesses are still poised for growth

D.R. Horton, Inc. (NYSE:DHI) Passed Our Checks, And It's About To Pay A US$0.20 Dividend
Sat, 28 Nov 2020 06:44:34 +0000
D.R. Horton, Inc. (NYSE:DHI) is about to trade ex-dividend in the next 4 days. You can purchase shares before the 3rd…

Strong demand for new homes signals U.S. economic strength, economists say
Wed, 25 Nov 2020 18:04:00 +0000
Sales of newly built single-family homes came in at an annual rate of 999,000 in October, the government said Wednesday, just a tick below the September rate, but a whopping 41.5% increase from the same month last year, highlighting housing's role as a bulwark for the U.S. economy. “Today's report from the Census Bureau suggested that demand for new homes in October continued to be strong,” Doug Duncan, chief economist at Fannie Mae, said in an email. “The monthly sales pace is now reported to have been essentially flat for the three months at an elevated level of about 1 million annualized units, a rate not seen since 2006.” Michelle Mayer, U.S. economist at Bank of America said in a research note that housing broadly has benefitted from very low interest rates, consumers reallocating spending from things like vacations to home buying, demographic changes and low household debt levels. The demand for new homes signals a broadly healthy consumer, though rising claims for unemployment benefits may suggest that the economic rebound seen in the third quarter could be fading, she added. High demand for new homes has also been a boon for home building firms. Pulte Group, Inc. , Lennar Corp. , D.R. Horton Inc. and Toll Brothers, Inc. have all returned more year-to-date than the S&P 500 , according to FactSet. To be sure, there's reason to believe that demand will begin to cool off in the months to come. Rubella Farooqi, chief economist with High Frequency wrote in a Wednesday note to clients that “supply constraints and rising prices could weigh on demand” and that “tightening lending standards could be a factor going forward.” With home sales at decade highs, real disposable personal income still higher than before the pandemic and household debt levels at their lowest in years, there is a solid argument that strength in housing will continue . Just how much one can extrapolate a booming housing market into the broader economy is debatable, however. “The strength in home sales is a testament to the fact that the current downturn is leaving an uneven imprint on the working population,” she wrote, adding that high income individuals have been able to continue working remotely, while many low-income workers have lost their jobs or have been forced to work less to care for children.

Home price growth surges at a pace not seen since 2014
Tue, 24 Nov 2020 14:00:05 +0000
Standard & Poor’s said Tuesday that its S&P CoreLogic Case-Shiller national home price index posted a 7% annual gain in September, the highest level since May 2014.

Post-Covid-19 Global Economy: Boom or Bust?
Mon, 23 Nov 2020 19:50:26 +0000
Pent-up and pent-down demand has set up the post-Covid economy for both a boom and a bust

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