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• Bears are taking the wheel at Hertz
• Largest option buying in equities so far
• Strategy positions for drop in Hertz

• HTZ 100% Rate It

Hertz Global Holdings is attempting to find support near a 13-month low, and one investor is positioning for a rebound rally.

optionMONSTER's Heat Seeker detected the purchase of about 5,000 January 10 calls for approximately $0.85 and the sale of a matching number of January 7.50 puts for $0.75 to $0.80. Volume was more than double the open interest in both strikes.

The position cost about $0.05 to $0.10 per call contract owned and will simulate owning the stock. It will provide huge leverage if HTZ pushes above $10.05 by expiration, and lose money below $7.50. If it remains between those two prices, both options will expire worthless.

The car-rental stock rose 0.35 percent to $8.61 in afternoon trading and has lost more than 40 percent of its value since peaking at $15.60 in late April. It fell as low as $8.36 today, its lowest price since July 2009.

The company's last earnings report on Aug. 3 was slightly ahead of consensus, although revenue missed forecasts.

Much of the attention in the name has focused on its planned purchase of Dollar Thrifty Automotive Group. There is currently litigation surrounding the deal, with some DTG shareholders preferring a competing bid from Avis Budget Group.

Overall options volume in HTZ was more than 7 times greater than average today.

(Chart courtesy of tradeMONSTER)

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