Options activity in HLT is sending a cautious signal — even as short sellers exit positions at the fastest pace in months. The divergence between the two markets is the standout story today.
HLT's put/call ratio hit 0.67 on June 2. That is 2.9 standard deviations above the 20-day mean of 0.61. It is the highest PCR reading since late April and sits well above the 52-week low of 0.49.
Options traders are buying downside protection. That is happening at the same time short sellers are covering hard.
Short interest fell 18.4% in a single week to 2.3% of float — near 52-week lows. The borrow market confirms there is no squeeze dynamic at play. Availability stands at 9,375% of short interest. That means roughly 94 shares remain available to borrow for every six already shorted. The lending pool is deep.
The picture is unusual. Short sellers are unwinding. But options traders are paying up for puts.
The most likely trigger sits seven weeks out. Hilton reports next earnings on July 22. The last two prints were punishing — the stock dropped 5.4% on the day in April 2026 and fell 1.7% after the prior quarter, with each declining further over the following five sessions.
With the stock up 4.5% over the past month and trading at $332.85 — below the consensus analyst target of $347 — the options market may be pricing in re-run risk ahead of that event.
Recent analyst moves were mostly supportive. After the April earnings, UBS raised its target to $371 (Buy) and Barclays lifted to $365 (Overweight). Morgan Stanley maintained Overweight with a $319 target. The one cautious move came from Bernstein, which trimmed its target slightly to $320 while holding Market Perform.
The mean target of $347 implies about 4% upside from current levels. That is a narrow cushion — which may explain why options traders are hedging rather than adding.
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