Puts lock in the price where investors can sell the hotel stock, letting them cheaply profit from a selloff in the shares. That way they stand to leverage a drop without the risk of short selling. He or she may also be a long investor seeking protection.
Marriott fell 0.42% to $64.24 on Thursday, but is up 50% in the last year. It's been trading on either side of $65 since early July, and made a lower high earlier this month. The most recently quarterly report also lagged estimates.
Overall option volume was 11 times greater than average, with puts accounting for a bearish 91 percent of the total.
Russell has no positions in the stocks mentioned.
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