Is Marriott rolling over?

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Marriott International has been stalling after a big run, and now the bears are bracing for a drop.

optionMONSTER's tracking programs detected the purchase of 12,000 September 62.50 puts for $0.95 to $1.20. Volume was more than 220 times open interest at the strike, which indicates that new positions were initiated.

Puts lock in the price where investors can sell the hotel stock, letting them cheaply profit from a selloff in the shares. That way they stand to leverage a drop without the risk of short selling. He or she may also be a long investor seeking protection. (See our Education section.)

MAR fell 0.42 percent to $64.24 yesterday, but is up 50 percent in the last year. It's been trading on either side of $65 since early July, and made a lower high earlier this month. The most recently quarterly report also lagged estimates.

Overall option volume was 11 times greater than average, with puts accounting for a bearish 91 percent of the total.

(A version of this post appeared on InsideOptions Pro yesterday.)




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: MAR

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