4 Trade Ideas for Hilton Worldwide: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Hilton Worldwide, $HLT, comes into the week at resistance at an all-time high. The RSI is resetting lower in the bullish zone as it consolidates while the MACD has also pulled back. There is resistance at 171.50. Support lower comes at 168 and 166.50 then 164.50. Short interest is low at 1.9%. The stock pays a dividend with an annual yield of just 0.35% and started trading ex-dividend on November 16th.

The company is expected to report earnings next on February 7th. The December options chain shows open interest building from 170 to a peak at 150 on the put side and spread from 150 to 180, biggest at 180, on the call side. In the January chain it is biggest at the 140 and 135 put strikes and at the 150 and 145 call strikes. In the April chain it is spread and thin from 175 to 130 on the put side but focused and large at 130 on the call side.

Hilton Worldwide, Ticker: $HLT

Trade Idea 1: Buy the stock on a move over 171.50 with a stop at 166.50.

Trade Idea 2: Buy the stock on a move over 171.50 and add a January 170/165 Put Spread ($1.70) while selling the April 200 Call ($1.25).

Trade Idea 3: Buy the January/April 180 Call Calendar ($5.15) while selling the April 155 Put (2.80).

Trade Idea 4: Buy the April 155/180/190 Call Spread Risk Reversal (75 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with just 3 weeks left in the year, equity markets continue to show strength with large cap and tech indexes approaching all-time highs.

Elsewhere look for Gold to continue its uptrend while Crude Oil continues to drop. The US Dollar Index continues to bounce in the downtrend while US Treasuries do the same. The Shanghai Composite looks to continue the downtrend while Emerging Markets drop in broad consolidation.

The Volatility Index looks to remain very low and stable creating a positive environment for equity markets to move to the upside. Their charts look strong, especially on the longer timeframe. On the shorter timeframe both the QQQ and SPY look to continue to drift higher. The IWM has taken the lead in the short term. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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