OptionsHouse

Options Trading News

October 23, 2012  Tue 3:47 AM CT

HTZ: SEE CHART GET CHAIN FIND STRATEGIES
Hertz has been stuck in neutral for months, but one trader is betting that it will shift into high gear.

optionMONSTER's Heat Seeker system detected the purchase of 4,000 December 14 calls in a single print for $1.15. The volume was nearly 5 times open interest in the strike at the beginning of the day, so this was clearly a new position.

HTZ slipped a penny yesterday to close at $14.33. The car-rental giant gapped higher and drew repeated call buying after Dollar Thrifty accepted the company's buyout offer in late August, but shares have traded sideways since then.

Yesterday's long calls are looking for the stock to gain roughly 6 percent by mid-December. The trader could sell those options earlier at a profit in the event of a rally, but they will expire worthless if the shares don't move.

Calls outnumbered puts by more than 8 to 1, a reflection of the bullish sentiment.
Share this article with your friends


Related Stories

HTZ

Hertz draws call buyers at key level

May 4, 2015

The rental-car giant on Friday broke out of a tight range in place since early March and closed above its 50-day moving average for the first time in two months.

Invest Like a Monster - San Diego: June 26-27

Premium Services

Archived Webinar

Education & Strategy

Long synthetic call

Long and short Synthetic stock are two of the six basic synthetic positions that exist. Number three on our list is the Synthetic Long Call...

View more education articles »