Bears hope to drive Avis downhill

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Avis Budget Group has pulled back from its highest level in 13 years, and traders are looking for the stock to decline further.

More than 2,000 July 33 puts traded in a strong buying pattern yesterday, led by a print of 1,057 that went for $2.20, according to optionMONSTER's Depth Charge system. The volume was well above the strike's open interest of just 232 contracts before the session began, indicating that these are new positions.

CAR fell 4.48 percent to close the session at $31.56. The auto-rental company had been trading sideways since peaking at $34.21 on June 4--its highest price since January 2000--until dropping with the rest of the market yesterday.

The puts bought yesterday lock in the price where traders can sell the stock no matter how far it might fall. These contracts are looking for CAR to trade below $30.80 before they expire in mid-July but will rapidly lose value if the shares stay at current levels or move higher. (See our Education section)

Total option volume in the name topped 4,500 contracts yesterday, nearly triple its daily average for the last month. Puts outpaced calls by more than 4 to 1, reflecting the session's bearish bias.

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