Tony Zhang of OptionsPlay said on CNBC’s “Options Action” there is a lot of interest in travel stocks right now. He wants to buy a call spread in Hilton Hotels Corporation Common Stock (NYSE: HLT) to get some exposure in the sector. The Dow Jones U.S. Hotels Index has just started to break out and Zhang sees an opportunity for further upside.
To make a bullish bet, Zhang wants to buy the April $115/$130 call spread for a total cost of $5.35. The premium is only around 4.5% of the stock’s value and the trade breaks even at $120.35 or around 3% from the closing price on Friday.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.