Options Expect a Pop in Wyndham Worldwide
Traders clearly think the hotel business will improve as Wyndham Worldwide is up more than 130 percent in the last month, and the options are looking for further upside.
WYN closed Thursday's session up 10.58 percent to $7. The stock was below $3 just a month ago after bouncing between $2.55 and $8.76 in the last six weeks going into 2009. Shares are still down 60 percent off their 52-week high above $24 set in May.
The bullish options action is in the April 7.50 calls, where more than 10,000 contracts have been bought, according to OptionMonster's proprietary tracking systems. The largest block of 4,900 was purchased for $0.20 against open interest of just 289 at that strike. The activity suggests that traders are expecting the stock to rise within the next week before the option contracts expire Friday.
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Chris McKhann is an analyst and writer for OptionMonster.