Calls Sold on Strategic Hotels (BEE)

Shares of Strategic Hotels & Resorts Inc. BEE are plummeting today by 10.27%, currently at $4.28. This comes on the heels of the company announcing a secondary of 75.9 million shares priced at $4.60. The stock is now trading well below the 50-day moving average. With such a strong run as it has experienced over the past three months, I am thinking the stock pulls back further, perhaps to $4.00. Options action is favoring call selling today with the June $5 call sold on the bid over 1,500 times. Open interest on the strike is 2,540 contracts, which suggests that a position was closed out. Strategic Hotels & Resorts, Inc. is a self-administered and self-managed real estate investment trust (REIT). It owns and asset manages upper upscale and luxury hotels that are subject to long-term management contracts.