United Rentals Stock Set Up For Extended Gains

United Rentals, Inc. (URI) call options are attractive, especially with the shares showing no signs of slowing down

Feb 23, 2017 at 8:39 AM
facebook X logo linkedin

United Rentals, Inc. (NYSE:URI) is in the desirable situation of trading just off its all-time high, while consolidating into its rising 20-day moving average after advancing over 150% in the past 12 months. What's more, shares of the rental company are approaching a period of seasonal strength. Since inception, the stock has averaged a 5% gain in March and 8% in April.


URI stands to benefit from options-related support, too. Options traders, in general, have been surprisingly put-skewed, per the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.85 -- outstripping two-thirds of readings from the past year. More specifically, heavy open interest at the newly front-month March 125 put could serve as a foothold in coming weeks.

Upgrades and short-covering activity could also be a boon to the shares. Three-quarters of analysts maintain "hold" opinions on URI. Plus, over 9% of the stock's float is dedicated to short interest.

It's a very good time to buy short-term options on the shares, as well. URI's Schaeffer's Volatility Index (SVI) of 29% rests in the low 5th annual percentile, suggesting front-month contracts can be had on the cheap. Likewise, the stock's Schaeffer's Volatility Scorecard (SVS) of 91 indicates the options market has tended to underprice URI's ability to make outsized moves in the past year.

Last of all, our recommended call option sports a leverage ratio of 5.9, and will double in value on a 16.7% gain in the underlying stock.

Subscribers to Schaeffer's Weekend Series service received this URI commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Series is one of our most popular trading services.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI