Wyndham Worldwide has been battling its way higher, and traders apparently believe that the hotel operator's stock is on solid ground.
optionMONSTER's systems detected the sale of about 1,600 January 32 puts for $0.65 to $0.80 against open interest of 1,346 contracts. The trade reflects a belief that WYN will remain above $32 for the next five weeks.
If it falls below that level, the investor will be required to buy shares at the strike price. But including the credit earned, the effective entry price would be around $31.30. (See related column by Chris McKhann)
WYN fell 1.72 percent to $34.23 yesterday and but is up more than 20 percent since the start of October. It has also been holding near its highest levels since August 2007, which could be leading some chart watchers to believe that it's in better shape than the broader market. WYN has also held up better than most other hotel names, such as Hyatt and Marriott.
Overall option volume in WYN was triple the daily average in yesterday's session.
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