Occupancy will climb slowly but steadily in North America next. A RevPAR stabilization in April suggests that its businesses in Greater China will continue to recover first. But revenue per available room (RevPAR) fell 90% worldwide. In the last quarter, Marriott started the year with strong momentum. The wash-out quarter suggests that earnings may only bounce from here. It took another 42 cents a share for guarantee reserves. The company included a 45 cent impairment charge and bad debt expenses. In the first quarter, Marriott reported earnings of 26 cents a share, down from $1.41 a share last year. This will fuel a continued rally in the following seven hotel stocks: Plus, the government is slowly allowing and even encouraging travel among the States. As a result, investors could bet on vacationing restarting in the next few weeks. Despite the steady rally, vacation-related stocks in the airlines and cruise ship sector are also up. If national parks are summer’s go-to vacation spots, then markets may already have paid too much for hotel stocks. Why should investors in hotel stocks bet that people will plan for vacations in the next couple of months? is only in the early phases of a re-opening, so most consumers will limit their travel. So that’s $2.7 million in pure profit, minus of course legal fees.After summer unofficially started after Memorial Day weekend, vacations in 2020 will be completely different. Today they are worth just over $3.5 million.Īnd unlike the other trade there does not seem to be an offsetting put purchase. The options, which are set to expire in November and don’t appear to have been sold, cost $835,668. On May 31, someone bought 2502 options to buy LinkedIn shares for a strike price of $180, which at the time was $53 higher than where LinkedIn’s shares were trading at the time. On top of that, the trades from last Friday were not the only questionable action in LinkedIn’s shares. But even if you factor in the $500,000 loss from the put position, the trader who bought the $160 calls still made a heck of a lot of money, roughly $1.4 million. The options are now essentially worthless, trading at $0.10 per contract on Monday, for a total of $6,670. For instance, 667 put contracts were bought on Friday at a strike price of $125, meaning the trade would make money if LinkedIn’s stock price fell below $125. However, even if the put was meant to hedge the call option, it appears whoever put on these trades stood to make more money if LinkedIn’s shares took off, perhaps because of an acquisition, which is what happened. Back in 2011, for example, unusual options trading preceded Hewlett-Packard’s purchase of 3Com, ultimately leading to insider trading charges against a hedge fund manager. If this is indeed a case of insider trading, it would hardly be the first time that options trading was the first giveaway. A more likely scenario, of course, is that someone in the market had an inkling of what was coming. Another red flag: All of the $175 call options were bought in the last five minutes of trading on Friday. They are now worth $569,100, a gain of 2176% in less than one trading day. Those same options are now worth just over $2 million, for a less than one trading day profit of nearly $1.9 million.Īlso on Friday, 300 options to buy LinkedIn shares at $175 were bought in four trades. Just how lucky? According to data from Bloomberg, 600 options to buy LinkedIn shares at $160 were bought in two trades on Friday afternoon for a total of $135,100. It is, of course, possible that last Friday’s buyer (or buyers?) simply had remarkably fortunate timing.
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