Lets face it, the high end hotels are doing terrible, and things will get worse from here.
More people are out of jobs than ever before and Revpar at Marriott is way down.
As Marriott moves higher today, you can see the rsi is not moving higher.
Maybe in the future they will do better, but the time is ripe to take profits in MAR and buy some puts.
So I am buying the OCT 30 puts at $8.30 (intrinsic of $8.20 while the volatility is low.)
I will be looking for a move back to the $20 level from here to take profits.
If MAR moves past 22.15 (its at 21.81 now) I will cut my losses there.
Otherwise I think it will move down pretty fast from here.
But just in case, I set my mental stop at 22.15 to leave room for any whipsawing effectss with the overall market moving higher today.
I will update you all on the outcome of this trade in a future post.