Avis Budget Stock Slips Despite Higher Rental Rates

CAR has added a whopping 492.7% over the past 12 months, though

Digital Content Manager
Dec 27, 2021 at 10:23 AM
facebook twitter linkedin

The shares of Avis Budget Group Inc. (NASDAQ:CAR) are slipping today, last seen down 2.8% to trade at $217.56. The car rental name is walking back earlier gains, after Kayak reported its average daily rental rates are up 31% year-over-year at $81 per day.

The last time we checked on Avis Budget stock, it was flashing a historically bullish signal. The equity has since slipped further bellow the 40-day moving average, though the $200 level seems to be acting as a floor. And while CAR remains far from its Nov. 2, all-time high of $545.11, it has added 492.7% over the last 12 months. 

Analysts lean bearish towards the equity, with six of the seven in coverage carrying a tepid "hold" or worse. Meanwhile, short interest is down 39% in the last two reporting periods, but CAR has failed to experience a jump on the charts, pointing to potential technical weakness. The 8.25 million shares sold still short make up 14.9% of CAR's available float, though. 

Now could be a good time to weigh in on the stock's next move with options. Avis Budget stock's Schaeffer's Volatility Index (SVI) of 71% stands higher than 14% of readings from the past year. This means options traders are pricing in low volatility expectations at the moment. 

It's also worth noting that the security's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 88 out of 100. In other words, CAR has exceeded option traders' volatility expectations during the last 12 months.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1