This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bears Take the Wheel at Hertz

By David Russell, reporter at OptionMonster

NEW YORK -- Hertz Global (HTZ) shot to a long-term high earlier this week along with other car-rental stocks, but Wednesday the options paper was bearish.

OptionMonster's tracking programs detected the purchase of about 3,000 April 23 puts against previous open interest of just 289 contracts. The early blocks priced for 65 cents to 70 cents and then inflated to as much as $1.15 as the shares pushed lower.

Puts lock in the price where investors can sell stock, which can provide big leverage in a pullback. They're used by shareholders looking to hedge against a drop or traders hoping to profit from a drop.

Hertz shares fell 3.8% to $22.52 but have more than doubled since July. The stock has been climbing amid consistently strong financial results and as money pours into the transportation sector.

In another big trade Wednesday, the April 22 calls were sold and the April 20 puts were bought. That also reflects a belief that upside is limited in the near term. However, volume was below open interest at both strikes.

Total option volume was five times greater than average in the session.

Russell has no positions in HTZ.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $129.96 -0.44%
FB $80.44 0.19%
GOOG $539.18 0.97%
TSLA $248.35 -0.44%
YHOO $43.15 -0.46%

Markets

DOW 18,011.94 -28.43 -0.16%
S&P 500 2,109.60 -2.13 -0.10%
NASDAQ 5,076.5240 -6.4050 -0.13%

Partners Compare Online Brokers

Free Reports