economy
This hotel chain could pull back in the near future. Trading the declines with options
Tony Zhang explains this put vertical.
TL;DR
- Marriott stock is trading at a steep premium to peers with similar growth rates.
- Technical charts indicate a potential head-and-shoulders topping formation.
- A breakdown below the neckline of the pattern could lead to a price target of $285.
- The company's valuation leaves little room for error in a slowing growth environment.
- A bearish options trade involving a put vertical spread is suggested to profit from a decline.