EXPE opened this morning at $23.50. So far today the stock has hit a low of $22.74 and a high of $23.55. As of 12:05, EXPE is trading at $23.11 up 0.68 (3.0%). The chart for EXPE looks bullish and S&P gives EXPE a positive 5 STARS (out of 5) strong buy ranking.
For a bullish hedged play on this stock, I would consider an October bull-put credit spread below the $19 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 17.6% return in seven months as long as EXPE is above $19 at October expiration. Expedia would have to fall by more than 17% before we would start to lose money. Learn more about this type of trade here.
EXPE has not been below $19 since July and has shown support around $21.50 recently.
Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in AMR. He does control a bullish hedged position in EXPE.