I am sure we all remember the demise of Hertz rent a car. I don’t know much about the other than they are like every other rental company. You go pick up a car it has a no smoking sticker stuck to the dash and you drive it like you stole it.
However I was looking through the option bot chain (if you aren’t using that I think missing out on some opportunities.). It had a 25c May 20th play listed. That made the proverbial wheels start to turn. Why and how come. When I looked at chart I noticed it only busted 25 one time in last year. Of course it has its background of bankruptcy etc. interesting article link below thay attest to their willingness to get back in the game and make money.
Then I started to figure out why it would be a opportunity. Well as I know I have heard a lot of chatter on TF and forums in regard to travel stocks UAL, AAL, CCL etc. well what’s everyone do when vacations start to happen ? They rent cars too you fly in somewhere need to get to your VRBO you rent a car. If anyone hasn’t done this recently they are astronomically expensive. The thing about the rental companies is their cost doesn’t change a lot but their pricing and profitability does. I know for certain HTZ is buying up cars at a premium but with the cost of rental now it more than offsets the premium. They have posted relatively solid earnings since reporting again. And I’d expect this quarter to be similar. As we saw this week UAL and AAL gain steam after their earnings.
I’d say this one would be tied right in with those. Grab a single 25c just to see if option bot knows wtf they are calling. Got a ways to go til expire but interesting catalyst well before then being their Q1 ER coming this week.
