$HST option traders were at it again today. Those $17 puts you could have bought for weeks at $.10, the same ones that had NO BID, meaning no one wanted to buy the, earlier this week, continued to see buys through the day. With over 6k contracts traded yesterday and 2K today, over 8k contracts have changed hands. Over $140k in OTM option contracts that will expire WORTHLESS if $HST doesn't crash the next three days.
It gets better. Option traders were even going out to the $16 level today. For the $17 strike to turn a profit in the next 3 days $HST needs to collapse, for the $16 strike... it defies any logic. There is not a realistic path to the $17 or $16 strikes turning a profit, unless someone knows something we all do not. What is the company hiding that insiders have leaked? That is the only plausible explanation for this OTM buying spree.
$HST is not a stock that drops 5% in a few days. It is not a volatile stock. The chart below shows what the $17 puts traders needs from $HST just to break even on their trade. I can't wait to see what happens tomorrow. Can we see another $50k thrown at a seemingly impossible trade? Or will we get that negative news the insiders traded on? Perhaps these option traders just plain dumb? Tune in tomorrow!
