Options Trading News

A week before Hertz Global reports earnings, one trader opened a bullish position on the car-rental company yesterday even as its stock fell sharply.

optionMONSTER's Heat Seeker detected the purchase of 3,000 September 14 calls in a single print for $0.20. Open interest in the strike was just 448 contracts at the start of the session, so this is a new position.

For those long calls to turn a profit, the stock would need to gain at least 28 percent before the options expire on Sept. 21. (See our Education section)

HTZ dropped 5.33 percent to finish the session at $11.10. The shares had been trading between about $12 and $14 since mid-May but broke below the lower bound of that channel with Friday's broad market selloff, a support level that goes back to the start of the year.  

The company is scheduled to release second-quarter results next Tuesday, July 31.

Total option volume in the name was more than 4 times its daily average for the last month. Calls outpaced puts by 14 to 1, a reflection of the day's bullish sentiment.