Hertz (HTZ) is off 81 cents to $13.81 and falling in sympathy with Avis Budget (CAR), which is suffering a 16.3 percent post-earning skid today. The top options trade in HTZ is a 3,100 contract block of Mar 14 calls for 85 cents at 10:10 this morning on ISE. Data indicate an opening buyer. It might roll out of a position in 3,100 Mar 13 calls, which traded fifteen minutes earlier at an average of $1.325 per contract when the market was $1.25 to $1.40. HTZ has suffered a three-day 7.2 percent slide, but is up 17.8 percent year-to-date. The roll might exit a position in ITM calls to open a new one in OTM Mar 14s. Hertz will release its earnings on Feb 22.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.