Options Trading News

November 19, 2013  Tue 2:45 AM CT

Call selling is looking for limited volatility in Host Hotels and Resorts.

More than 14,700 HST options changed hands yesterday, compared to the daily average of 801. Virtually all of that volume was in the December 19 calls, where a single print of 14,427 was sold for the bid price of $0.40. The previous open interest at that strike was 123 contracts, so this is clealry a new position.

Less than a minute later, a single block of 720,700 shares of HST was bought for $18.99. Taken together, the stock and option trades create delta-neutral position that is betting on lower volatility that that implied by the options. (See our Education section)

HST lost 0.84 percent to close at $18.85 yesterday, in the middle of its recent range. The stock hit a 52-week high of $19.26 two weeks ago.
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Cap seen for Host Hotels & Resorts

November 24, 2015

The market-neutral strategy appears with the hotel stock trapped in a range.



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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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