$DHI calls up sixfold overnight

Option traders posted exponential profits today on bullish positions opened in D.R. Horton only one session earlier.

Just yesterday, Investitute’s tracking systems found that 4,300 Weekly $41 calls were purchased for $0.52 to $0.54 as part of a bullish spread with shares at $39.42. This was clearly a new position, as open interest in the strike was a mere 183 contracts before the trade occurred. Investitute co-founder Jon Najarian cited the unusual activity on CNBC’s “Halftime Report” today.

Those calls rose to $3.10 today, about 6 times their initial purchase prices. The stock rose 11.9% at the same time, showing how quickly options can far outperform their underlying shares. It was the second winning trade in DHI posted on Investitute in as many weeks.

DHI spiked higher by 10.88% to $43.84 today. The homebuilder topped estimates on the top and bottom lines before the market opened this morning.