Hertz Options Bears Load Up on Puts Ahead of Earnings

Hertz will report earnings after the close tonight

Managing Editor
May 6, 2019 at 2:08 PM
facebook X logo linkedin

Rental car icon Hertz Global Holdings Inc (NYSE:HTZ) will step into the earnings confessional after the market closes today. Ahead of the company's first-quarter report, options traders are coming out of the woodwork, with an emphasis on puts.

Specifically, nearly 5,900 HTZ options have changed hands today, three times the average intraday amount and double the number of calls traded. Leading the charge is the weekly 5/10 21.50-strike put, with new positions being opened. Buyers of these puts expect HTZ to run into some post-earnings headwinds by the end of this week.

Looking at Hertz's earnings history, it's somewhat surprising options traders are loading up on puts. The stock has historically outperformed in the session after earnings, closing higher in three of the last eight quarters, including a 24.6% surge back in August. This time around, the options market is pricing in a 18.4% swing for tomorrow's trading, regardless of direction, much loftier than the 12.8% next-day move HTZ has averaged over the last two years.

But there is reason to be cautious, since the equity's 14-day Relative Strength Index (RSI) of 68 sits on the cusp of overbought territory. At last check, Hertz stock was basically flat at $19.63, looking for its fourth-straight win. On its way to a 43.4% gain in 2019, HTZ has seen pullbacks contained by the $16 level. However, the shares remain a ways off their Aug. 22 12-month high of $22.37. 

Daily Stock Chart HTZ


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