CNBC’s Options Action Trade for Nov 20th, 2017 – DR Horton (DHI)
On Friday’s CNBC’s Options Action, the crew analyzed the performance of the homebuilders sector (ITB). ITB has outperformed the market on an absolute basis, but has recently failed to make relative new highs. DR Horton has rallied significantly in the past 2 months to its all time high and is likely due for a correction back to the mean. Expecting either the stock to contend with this resistance level or pullback to its moving average, Michael Khouw suggests selling a Jan 48/50 Call Vertical for a $0.80 Credit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: DHI Options Action