Starwood Hotels (HOT) is seeing double its normal trading volume on speculative call buying. Shares are up $1.24 to $47.47 on renewed takeover chatter. HOT, Boyd Gaming (BYD), Las Vegas Sands (LVS), and other casino operators pop up from time to time as takeover candidates during a period of consolidation in the industry. So, the talk is not new, but seems to be driving some action today. Shares are up and 18,000 HOT calls have traded on the day, or ten times the number of put options. The June 50 and June 55 calls are dominating the action, which seems to reflect a significant amount of speculative call buying.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.