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00:00We've had this sort of puzzling reaction to this morning's jobs report right. Initially we saw a drop it seemed to be that the read was that if rates were going to go higher that wasn't necessarily a good thing for stocks. But then they reversed course. Now I'm just curious what the buzz is down there among options traders you know Julie you hit the nail on the head. I mean it seemed like such a benign report this morning in you know it's the kind of era that we're in right now is good news good news or is good news bad news and I think after everything was was kind of weeded out and digested in you know overnight Europe was a little bit lower. That's why things picked up today because people realized that you know what Yellen had said earlier in the week was probably more of a case towards rates staying where they are and maybe not going higher than what the factor of the job report had. So I think after people kind of digested that shrug that off and said You know what. It's really more status quo than anything. But then what really made the market propel later in the day was you know an hour after that or so we got the ESM report which you know was a real good numbers showed manufacturing picking up. So that combined with the continued slide in oil prices that that's really what fueled the market you know going through the day today I'm curious options wise if there's anything in particular that has seen a big pickup in activity today in reaction to jobs or to the manufacturing report for that matter actually you know what. I've seen some put buying down below . But as the day progressed and as as the market you know steadily climbed higher and the VIX Volatility dropped a little bit volume also dropped. But earlier this morning there was a lot of put buying down below. Gotcha. Now the specific company that we're watching today is Marriott. Of course the group led by China's and bank pulled out of its bidding for Starwood . That leaves Marriott as the sole arbiter now and the companies are both trading down Starwood and Marriott. It looks like though you're going to step in here maybe take a little taste on Marriott what's your rationale. I love Marriott here. You know the place that it's trading here on that 67 area or so has been some pretty significant support dating back to August or so. So that's one reason technically why I like it. Secondly you know the reason it's down today is because OK they won quote unquote the bidding for Starwood. So typically that's what happens with the the bitter the takeover stock that that drops a little bit . But you know the combination of these two stocks here and the synergies actually moving forward there's some massive massive cost savings Marriott's got a great brand Starwood has a great brand. And again that coupled with the technical support areas sixty seven I love it. So what I'm going to do is I'm actually going to go out to use me options because Marriott reports earnings the end of April and I want to be in play for that I'm going to buy the May 70 75 call spread it's a five dollar wide call spread I can pay dollar 10 dollar 20 to do that. That's my max loss. That's my downside. But the market the option market right now is pricing and going out to May expiration about an eight dollar move. If we get just that move that the market is pricing in. That puts us right back up about two that seventy five dollar level. So you know if this thing you know if this thing heads up north you know five bucks. I'd love to trade .

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Options Update: How to Play Marriott

Trading Advantage senior market strategist Scott Bauer discusses his options strategy for Marriott with Julie Hyman on “Bloomberg Markets.” (Source: Bloomberg)