As Wyndham Worldwide trades at its highest levels in nearly four
years, investors apparently think that further gains will be hard
to come by.
optionMONSTER's tracking programs detected the sale of more than
2,800 June 35 calls for $0.85 and $0.90 against open interest of
just 841 contracts. The trade reflects a belief that the hotel and
time-share company will remain the $35.85-$35.90 range for the next
WYN rose 0.79 percent to $34.27 yesterday and is up 15 percent so
far this year. It gapped higher in the previous session after
earnings beat consensus estimates and management raised guidance.
The company, which owns Howard Johnson and Days Inn, has been one
of the strongest names in the hotel sector.
Yesterday's call selling, however, reflects a belief that upside
will be limited going forward. The trade obligates the investor to
sell stock for $35, a price that WYN hasn't fetched since the
summer of 2007. He or she is probably a shareholder looking to earn
income on an existing position who's willing to sell the stock at a
Overall option volume in the name was 9 times greater than average,
with call selling accounting for most of the activity.
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.