Hyatt bullish inclined naked Puts - 16 Oct Expiry

Hyatt is part of the hotel sector that has been battered by COVID-19 and since Mar it has slowly been gaining ground by following the overall market's bullishness. As it is one of the hugely weakened sectors, I don't expect much speculation/ volatility in this sector (Near term).

At this point (24 Sep), the market has been bearish across sectors. H's price movement has not fallen significantly vs the other more speculative sectors like tech. Since 17 Sep, price has dropped -13%.

  • I placed a naked put at Strike price of 45 as it is near a key S/R line.
  • Despite the past few negative days the larger trend is still bullish (Yellow line)
  • RSI is also at 40 which seems to be the average low

I also like it that it is the opposite of my JETS trade as it acts like a hedge. This seems like a viable hedge strategy as I can win both or lose one where the other will mitigate that loss (To an extend). Another hedge thought would be to potentially buy a cheap OTM Vix put or call. But let's see.

Sold 40 Calls @ 0.45, Strike 45
BP block: 20k

Max gain - est $1800


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