Stock Alert: DR Horton Inc Stock Volatility Hits A Deteriorated Level – CML News

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Stock Alert – But Not What You Might Think
Before we cover the full analysis we make a quick alert here that D.R. Horton Inc (NYSE:DHI) has seen its stock price move at a substantially lowered level. We’ll go through the details below — but that’s the lede — the stock has been unusally quiet. If there was a post it note to summarize the stock movement in the last 30-days it would likely read “quiet time… too quiet?” The HV20 is 22.64% verus the HV20 of the S&P 500 at 8.56%.

Another bit to this alert of quiet time, which we cover in the article, is that while the historical volatility may be a substantially lowered level, the real question that needs to be answered for option traders is not if the HV20 is low, but rather if the implied volatility that is priced for the next 30-days accuratley reflects what we’re about to see in the stock for the next month

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