The bulls are making reservations to spend more time at Starwood Hotels & Resorts Worldwide.
optionMONSTER's Heat Seeker monitoring system detected the purchase of 5,500 May 62.50 calls for $2.80 and the sale of an equal number of February 60 calls for $2. Volume was below open interest in the 60s, indicating that an existing position was rolled from one contract to the other.
The transaction cost $0.80 and gives the investor an additional three months while providing s ignificant leverage potential . Because the 60s are in the money , he or she would have been forced to buy shares at the close today if the position hadn't been adjusted.
HOT is down 0.76 percent to $61.74 this afternoon but is up 22 percent in the last three months. The hotel operator has refused to back down from long-term resistance for the last three weeks, which could be leading some chart watchers to believe that a big rally is in the works.
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Almost 12,000 contracts have traded in the name so far today, which is quadruple the daily average. Calls outnumber puts by more than 90 to 1.
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