Hospitality stock Hyatt Hotels Corporation (NYSE:H) is down 1.7% to trade at $160.79 at last check, after the company lowered its full-year guidance due to damage stemming from Hurricane Melissa. The Category 5 storm was the strongest on record to hit Jamaica, with seven of Hyatt's properties facing cancellations and closures until late 2026.
H maintains a 28.8% nine-month lead, and is on track to close 2025 with a modest 2.6% gain. The stock is now pacing for a third-straight loss, however, and could snap its three-week win streak. Though the shares are fresh off a Dec. 15 surge to their highest level since February, they are today testing support at the 20-day moving average.
Short sellers are already firmly in control, with short interest up 1.3% in the most recent reporting period. The 6.14 million shares sold short now make up 14.3% of the equity's available float.
Options traders have been more pessimistic than usual. This is per H's 50-day put/call volume of 1.37 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits higher than 97% of annual readings.
It's also worth noting that premium looks affordably priced, as the security's Schaeffer's Volatility Index (SVI) of 25% sits in the 4th percentile of its annual range. In other words, near-term option traders are pricing in low volatility expectations.
