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
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
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