What's behind Host call selling
Chris McKhann | firstname.lastname@example.org
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.