By David Russell of OptionMonster
(HTZ - Get Report) has been hit by accounting woes, but now the bulls are back.
OptionMonster's tracking systems detected the purchase of more than 12,000 December 33 calls, most of which priced for $1.20. Volume dwarfed previous open interest of just 547 contracts at the strike, which indicates that new money was put to work on the long side.
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Calls lock in the price where investors can buy the stock, letting them control a rally at limited cost. They can also generate significant leverage if shares move in the right direction. (See our education section
Hertz rose 1.28% to $29.34 yesterday and has been on the rise since bouncing at its 200-day moving average last week. The shares are now attempting to fill the bearish gap that occurred on June 6 after the car-rental company cut guidance and said it would restate previous results.
Total option volume was five times greater than average in the session, with calls outnumbering puts by a bullish 20-to-1 ratio.
(A version of this post appeared on InsideOptions Pro
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