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

Bulls riding transport bandwagon

July 29, 2015

Transports have been snapping back to life, and traders have been snapping up calls in industries ranging from rental cars to railroads.

HTZ

Traders turn quick profits in Hertz

July 23, 2015

The car-rental giant gapped up after completing its long-awaited accounting review and updating guidance at the end of last week, but it quickly fell back.

HTZ

Notable option activity in equities

July 7, 2015

Nearing the halfway mark in today's session, here are the individual equity names with unusual option activity on optionMONSTER's ActionTracker data system.

HTZ

Trader looking for rebound in Hertz

July 7, 2015

The rental-car giant has lost 31 percent of its value since the start of January, struggling with weak pricing and competitive concerns over ride-sharing services such as Uber.

OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Stops

With the growing popularity of the Advantage Point newsletter, we are picking up new members every single day. So, the powers that be have asked me to stray away from our Option Theory and Strategy topics and discuss a couple of topics related to our weekly trade ideas. This week we are going to talk about how to set and execute our stops.

View more education articles »