Host Hotels & Resorts hasn't traded below $10 since late 2009, and one investor is confident it won't break that level in the next two months.
optionMONSTER's tracking systems detected the sale of more than 5,000 October 10 puts, first for $0.40 and then for $0.35. All the activity occurred in the final 15 minutes of trading, which reflects activity by a single large investor.
HST rose 6.50 percent to $11.31 yesterday. The company owns hotels such as the New York Marriott Marquis and the Hyatt Regency Washington on Capitol Hill. Its last earnings report on July 20 matched expectations, but guidance was weak and revenue missed expectations.
The stock has lost one-third of its value since that release, and Monday's put selling suggests the worst of the bad news is now priced in. The strategy lets investors earn income from the passage of time, even if shares fail to rally or push lower. See our Education Section for more.
Overall options volume was more than 10 times the daily average.
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