Hertz calls bet on gains by Christmas
At least one trader is counting on Hertz Global to rebound by the end of the year.
OptionMonster's tracking program detected the purchase of 2,500 December 45 calls for $0.30 at the same time yesterday. There was no open interest in the strike before the trade appeared, showing that it is a new position.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
HTZ rose 2.31 percent to $33.70 yesterday but is down 37 percent in the last three months. The car-rental company is expected to report earnings before the market opens on Nov. 3.
Overall option volume in the name was twice its daily average yesterday. Calls outnumbered puts by a bullish 5-to-1 ratio.
More From optionMONSTER
