OptionsHouse

Options Trading News

November 15, 2012  Thu 3:16 AM CT

HTZ: SEE CHART GET CHAIN FIND STRATEGIES
One investor wants to take the money and run in Hertz.

optionMONSTER's Depth Charge monitoring system detected the purchase of 11,575 March 10 puts for $0.30 and the sale of an equal number of March 13 calls for $2.25. There was barely any open interest at either strike before the trade appeared, indicating that new positions were initiated.

The investor probably owns shares in the car-rental company and is worried about a selloff. He or she collected a credit of $1.95 but will be forced to sell their stock for $13 if it's above that level on expiration. Below it, the trader will have the right to sell for $10.

This combination trade locks in a maximum exit price of $14.95 and a minimum of $11.95. See our Education Section for more on how calls and puts can be used to manage risk.)

HTZ, which has been moving sideways for the last three years, fell 1.83 percent to $14.45 yesterday. It's currently near the top of its recent trading range, which could be leading some chart watchers to expect a push lower--especially if the broader market weakens.

Total option volume in the name was 6 times greater than average yesterday, according to the Depth Charge.
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.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: At the Break

So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

View more education articles »