Homebuilding Stock Heads for Worst Day Since March 2020

Core Insights - D.R. Horton Inc (NYSE:DHI) reported disappointing fiscal fourth-quarter results and full-year guidance, primarily due to demand pressure, with earnings of $3.92 per share missing analyst estimates of$4.17 and revenue of $10 billion falling short of expectations of$10.22 billion [1] Stock Performance - DHI's stock is down 9.2% to $163.83, marking its largest single-day percentage drop since March 2020, and is trading at its lowest levels since mid-July, significantly below its record high of$199.85 from September 19 [2] - Despite the recent decline, the stock is still holding onto a roughly 6% gain since the start of the year [2] Options Activity - DHI is on the short sell restricted (SSR) list amid volatility, with options volume reaching eight times its typical level for the day, indicating heightened trading activity [3] - Call options are favored, with 17,000 calls traded compared to 8,541 puts, and the November 165 call and weekly 11/1 167.50-strike call are the most popular contracts [3] - The 50-day call/put volume ratio of 1.39 at major exchanges indicates a strong preference for calls, ranking higher than 94% of readings from the past year [4]