The bulls are piling into Host Hotels & Resorts ahead of tomorrow's earnings report.
optionMONSTER's Heat Seeker monitoring program detected the purchase of almost 12,000 May 22 calls, most of which priced for $0.15. Volume dwarfed the strike's previous open interest of just 740 contracts, indicating that new positions were established.
These long calls fix the price where investors can buy the hotelier's stock, letting them play for a rally with minimal risk. That especially makes sense with an event like quarterly results in the morning that could also cause a selloff. (See our Education section)
HST is up 1.46 percent to $21.24 in midday trading, jolting higher after the bullish option trades appeared. The stock has been trending steadily higher for more than a year and is now back to levels last seen in late 2007.
Total option volume is more than 7 times the daily average so far today, according to the Heat Seeker. Calls outnumber puts by 200 to 1.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.