Marriott International Inc (MAR) Puts Pop as Buyout Battle Intensifies

Anbang Insurance put in a fresh bid for Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT), topping Marriott International Inc's (NASDAQ:MAR) offer

Mar 28, 2016 at 3:12 PM
facebook X logo linkedin

The tug-of-war between Marriott International Inc (NASDAQ:MAR) and China's Anbang Insurance over Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) is intensifying, with the latter boosting its buyout offer to nearly $14 million -- topping the upwardly revised bid made by MAR last week. Nevertheless, the stock is trading up 3.9% at $71.31 -- on track to snap a four-session losing streak -- thanks to a price-target hike to $75 from $73 at Baird, while options volume is running at an above-average clip.

Drilling down, total options volume is trading at 1.3 times the expected intraday clip, with calls having a slight lead over puts. Most active are MAR's April 67.50 put and 72.50 call, and data from the International Securities Exchange (ISE) points to the possible initiation of a long strangle. Elsewhere, it appears as if the stock's May 60 and 70 puts are being bought to open.

More broadly speaking, short-term speculators are more put-skewed than usual toward options expiring in three months or less. In fact, MAR's Schaeffer's put/call open interest ratio (SOIR) of 1.67 ranks higher than 76% of all comparable readings taken in the past year.

However, this metric accounts for options that have been both bought and sold to open, and by the looks of it, MAR speculators have been partial to put writing in recent sessions. Over the past 10 sessions, MAR speculators have sold to open 1.40 puts for each one they've purchased.

Specifically, Marriott International Inc's (NASDAQ:MAR) April 70 put has seen the biggest rise in open interest over this time frame, and, according to data from the major options exchanges, a number of these contracts have been sold to open. In other words, they are betting on $70 to serve as short-term support through front-month options expiration at the close on Friday, April 15.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical  levels, and top economic stories straight to your inbox.

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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI