Hilton Stock Tumbles Following Surprise Q4 Loss

The equity is still up nearly 43% over the last nine months

Deputy Editor
Feb 17, 2021 at 10:21 AM
facebook X logo linkedin


The shares of Hilton Hotels Corporation (NYSE: HLTare down 2.3% at $110.99 this morning, after the hotel chain reported fourth-quarter losses, which surprised analysts who anticipated a marginal profit. Revenue fell as well, with headwinds from Covid-19 causing a 59.2% year-over-year drop in comparable revenue per available room. 

Today's negative price action has Hilton stock testing support at its 10-day moving average -- a formerly resistant trendline it toppled in early February. The 30-day moving average, which has acted as a floor for HLT during the past couple weeks, continues to provide support on the charts Longer term, the equity has added 42.7% over the last nine months.

Option traders have been targeting calls with gusto. The security sports a 50-day call/put volume ratio of 2.59 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than all but 2% of readings in its annual range. This suggests a heavier-than-usual appetite for long calls of late. Echoing this, HLT’s Schaeffer's put/call open interest ratio (SOIR) ratio stands higher than just 8% of readings from the past 12 months, indicating short-term option traders have rarely been more call-biased.

With earnings out of the way, now looks like the perfect time to enter on HLT with options amid a volatility crush. The security's Schaeffer's Volatility Index (SVI) of 39% sits in the extremely low 7th percentile of all other annual readings, meaning the stock sports attractively priced premiums at the moment.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI