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Sharp move seen in Host Hotels

Chris McKhann (chris.mckhann@optionmonster.com)

A large trader is looking for Host Hotels & Resorts to see a big move higher or lower in coming weeks.

A block of 2,700 June 22 calls was bought for $0.19 on Friday, according to optionMONSTER's Heat Seeker tracking system. This is clearly a new position, as open interest in the strike was just 65 contracts before the trade appeared. The volume was also 3 times the total daily average in the name.

Less than 2 minutes later, 94,500 shares of HST were sold in one print for $22.72. That would exactly offset the delta of the option position, making this a directionally neutral play that is looking for a sharp move up or down in the stock and/or for its volatility to be higher than that implied by the price of those calls. (See our Education section)

HST gained 0.22 percent to $22.77 on Friday. That was just $0.03 off the hotel operator's peak of the session, which was its highest price since October 2007. Shares have been running higher from support at $18 reached in early February. 

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