Investor Extends Stay in Host Hotels

Hotels are a focal point with Hilton going public, and yesterday Host Hotels & Resorts lit up our systems with upside option activity.

optionMONSTER’s trade scanners detected unusual volume in the December 19 and April 20 calls, with an investor rolling a long position up in price and out in time. He or she sold the 19s for $0.03 and bought the 20s for $0.35, apparently looking for a run higher into the spring. More than 7,000 contracts traded at each strike.

Long calls lock in the price where a stock can be bought, letting investors cheaply position for a move higher. That way they can manage risk and enjoy big leverage if the shares move in the right direction.

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