Dollar Tree Investors Flock to Bullish Options Trades

Smart Money is Betting Big in DLTR Options

March 25, 2023 - In a sign of increasing confidence in the homebuilding industry, options traders are placing large bets on the prospects of DR Horton (DLTR), one of the largest homebuilders in the United States.

According to recent data, open interest in DLTR options has surged to its highest level in over a year, with traders buying up calls and puts in anticipation of a continued rebound in the housing market.

The surge in options activity is particularly notable given the recent volatility in the homebuilding sector, which has seen a number of major players report disappointing earnings and warn of slowing demand.

Despite these challenges, many analysts remain bullish on the long-term prospects of the housing market, citing factors such as low interest rates, a growing economy, and a shortage of affordable housing options.

As a result, smart money is betting big on DLTR's ability to capitalize on these trends, with many traders buying up calls and puts in anticipation of a continued rally in the stock.

One popular options trade has been the purchase of DLTR calls with a strike price of $55, which would give traders a significant profit if the stock can break through this level and continue its upward momentum.

Other traders have been buying up puts with a strike price of $40, which would give them a significant profit if the stock were to decline to this level, potentially providing a buying opportunity for long-term investors.

Overall, the surge in options activity on DLTR suggests that many traders are betting on a continued rebound in the housing market, and are willing to take on risk to capitalize on this potential upside.