$HST Highly Suspicious Host Hotel and Resorts Option Activity Today

The last time I highlighted unusual option activity like today's trading in $HST put options, was at the start of the year. I was the first to bring a massive multi-million dollar bet on $LNCO downside to light. That trade turned into a $16 million + profit for the trader who entered it.

A similarly unusual option trade a few months ago in $LEAP saw a trader illegally bet $13k to net over $1,000,000. https://www.optionmillionaires.com/2013/leap-suspicious-13k-trade-could-net-over-1-million-when-the-market-opens-on-monday/

Strange and unusual option action implies someone knows something the market doesn't.

Today highly unusual and suspicious trade activity occurred in the October $17 puts for $HST. Its more exciting watching paint dry than observing the daily movement of this stock. Today it was stuck in a .25 range, Friday a $.30 range. Logic would say this stock has a ZERO chance of falling 2%, or 3%, yet someone was willing to bet over $40,000 that the stock will drop well over 5% by Friday. Much like that $LNCO trade 10 months ago the trader entering these trades either has massive amounts of money to burn... or he/she knows something that the rest of us are not privy to.

Put simply, as I did with $LNCO, if $HST drops in price significantly this week we will know it was not a coincidence,and someone used information the public was not privy to. They used this information to make themselves a tremendous amount of money.

The $HST $17 puts opened the day with ZERO bid $.10 ask. No one wanted those options.... Why? because there is almost ZERO chance of the stock breaking below $17 before Friday. By the end of todays trading session those $17 puts were trading at $.15 x $.20. The total volume was over 6,500 contracts! Someone either much smarter than you and I, or who is able to get information the rest of us can't, placed a massive bet on significant downside for $HST. Unlike the $LNCO trade that took many months to work out, this trade has 4 days left. 4 days to confirm how corrupt this market can be. We saw it a few months ago with $LEAP.... are we going to see it again here with $HST?




Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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