Hilton receives show of support
Traders are betting that Hilton Worldwide will hold its ground in the near term.
optionMONSTER's tracking systems detected the sale of 2,665 July 26 puts for the bid price of $0.10 at the same second on Thursday. This is clearly a new position, as volume was above the previous open interest in the strike.
The put seller collects the $0.10 premium and is looking for HLT to stay above $26 through expiration at the end of next week. If the stock falls below that strike price, the trader will be on the hook to buy shares at that level. Investors sometimes sell puts this way in hopes of picking up a stock at an effective discount to existing levels. (See our Education section)
HLT finished Thursday unchanged at $27.78. The hotel operator climbed to $31.60 after its last quarterly results on April 29, its highest price since going public again in December 2013, but has drifted lower since. The next report is scheduled for July 29.
Hilton's total option volume on Thursday was 30 percent higher than its daily average for the last month.
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