DailyPlay – Opening Trade (HLT) – September 13, 2022

HLT Bearish Trade Idea

View HLT Trade

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish

Details: Buy to Open 8 Contracts October 21, 2022 $135/$125 Put Vertical Spreads @ $2.67 Debit.

Total Risk: This trade has a max risk of $2,136 (8 Contracts x $267).

Counter Trend Signal: This is a Bearish trade on a stock that is experiencing a mildly bullish trend. 

1M/6M Trends: Bullish/Mildly Bullish

Technical Score: 6/10

OptionsPlay Score: 150

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that if there is a multi-leg option strategy, it should be entered as a single trade. 

Please note these prices are based on the previous day’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. This will be reflected in the Portfolio tab within the OptionsPlay platform.

Investment Rationale

As the equity market continues a grind higher into resistance levels, we are starting to take a look at bearish opportunities in consumer names that are showing signs of exhaustion and underperformance. HLT has been a name that has stuck out with an unreasonably premium valuation relative to its peers, while starting to shows signs of exhaustion after a near 30% rally from the June lows. Additionally, it is trading up against the weekly cloud bottom and base line which converge at $138 forming a strong level of resistance. Coupled with the Daily Setup +13 count that we printed on yesterday, I’m looking for a reversal lower back towards the $120’s.

 Buy to Open HLT Oct 21 $135/$125 Put Vertical @ $2.68 Debit.

HLT – Weekly