Bullish bet raised in Starwood Resorts
Mike Yamamoto | email@example.com
optionMONSTER's Heat Seeker system detected the sale of 2,000 February 60 calls for $1.62 and, at the same second, the purchase of 2,000 August 65 calls for $3.15 yesterday. The volume was below the previous open interest in the February contracts but well above it in the August options.
This indicates that a trader is closing the earlier position, which is almost in the money, and opening a new one at the later-dated, higher strike. The new long calls, which lock in the price where the stock can be purchased, are now betting that Starwood's shares will rise above $68.15 by expiration in mid-August. (See our Education section)
HOT gained 0.54 percent yesterday to close at $59.54. Shares have pulled back a bit after running toward long-term resistance around the $61 level last Friday.
Yesterday's roll pushed overall call volume in the name past 4,500 contracts, outpacing puts by more than 9 to 1.
Starwood is scheduled to report fourth-quarter results on the morning of Feb. 7.