The bulls want to go places with Hertz Global.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of some 5,000 January 29 calls for $0.73 and the sale of an equal
number of January 20 puts for $0.64. Volume was more than 5 times
the previous open interest at each strike, indicating that new
positions were initiated.
The strategy cost just $0.09 and is similar to owning stock in the
car-rental company. If it rallies, the
will appreciate in value while the
puts sold short
will dwindle. This way, he or she can cheaply position for upside
with the calls while also programming a buy order at lower prices
by selling the puts. (See our
HTZ declined 3.61 percent to $24.30 yesterday as worries about
conflict with Syria sent most travel-related names lower. It surged
more than 65 percent between January and mid-July but has been
working its way lower since. Yesterday's bullish option play is
apparently looking for the longer-term uptrend to continue.
Some 13,000 Hertz options changed hands in the session, more than 5
times normal amounts.
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