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Hertz attracts large bullish position

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Hertz Global attracted a large bullish trade as shares reached their highest level in six years today.

optionMONSTER's Heat Seeker system detected the purchase of 10,000 September 27 calls at the same second for $1.50. This is clearly a new position, as open interest in the strike was just 393 contracts before the trade appeared.

HTZ is up 0.92 percent this morning to $25.74 after peaking at $26.04 earlier in the session, its highest intraday price since July 2007. The car-rental giant is up more than 50 percent since starting the year below $17.

Today's long calls , which lock in the price where the stock can be bought no matter how far it might rise, are betting that HTZ will trade above $28.50 by mid-September. These options could be sold earlier if premiums gain with a rally before then, but they could expire worthless if shares remain below the $27 strike price. (See our Education section)

Total option volume in the name tops 13,200 contracts so far, compared to a daily average of 2,231 for the  last month. Overall calls outnumber puts by 6 to 1, a reflection of the session's bullish sentiment.

The company is scheduled to present at the Barclays High Yield and Syndicated Loan Conference tomorrow.

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