Political Giving Headlines Drive Bulls to Marriott Stock

Marriott calls are flying off the shelves this morning

Digital Content Manager
Jan 11, 2021 at 10:27 AM
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Hotel and cruise provider Marriott International Inc (NASDAQ:MAR) announced on Sunday that its Political Action Committee would pause donations to U.S. lawmakers who voted against certifying President-elect Joe Biden's victory. A spokesperson for the company said it was taking the "destructive events at the Capitol to undermine a legitimate and fair election into consideration." At last check, MAR is down 1.2% at $128.33. 

Despite the major hit the hotel and travel sector has taken this year, MAR has managed to claw its way back from its late-March lows to touch a 10-month high of $135.84 in early December. While the equity hasn't been able to close the late-February bear gap that lead to its massive March selloff, the 40-day moving average could still move in as potential support. Plus, Marriott stock is up over 66% in the last nine months. 

Options traders, meanwhile, are optimistic. This is per MAR's 10-day call/put volume ratio of 1.42 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 80% of readings from the past year, suggesting a much healthier-than-usual appetite for long calls of late. 

This bullish sentiment is being echoed in today's trading. Already, 2,825 calls have crossed the tape -- five times the intraday average -- compared to just 116 puts. The two most popular positions by far are the February 130 call and the 135 call in the same monthly series, with positions being opened at both. 

 

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