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Avis Budget and A Short Squeeze Plus Hertz Getting Dragged Into The Action

Hertz Global is on a terror. . Stocks in the $5.00 range sometimes do that. Yet really it's the Avis Budget short squeeze that is causing this stir. Look at how it jumped just over $105.00 dollars today. How often do you see a chart like this? It's a short squeeze and the stock is trading on high daily volumes. At one point this morning (a Tuesday) there was a "stop trading" on it. Trading options on it defies logic as they are so expensive. Look at this one example. These are the 700 series of Calls and the stock is only trading at 11:17 a.m. at $665.00. In other words they are $35.000 "out-of-the-money". Look at how crazy expensive they are. The stock would have to jump $105.00 or one hundred and five dollars by the end of the week just to break even! Who would be crazy enough to make such a bet? Day traders would be because they are banking on the effects caused by the stocks interday momentum. Let me explain this better by showing you an end of day re...
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My Fascination With Pfizer Options.

The DJIA index closed up 588 points on the day, a Wednesday after losing 870 points on the previous day.
Now Pfizer's one day chart.
Can you see how it got dragged up in today's action?
Now this. There was no trading in them during the last 2.5 minutes of trading. In some ways that's a good thing.
Could tomorrow's market open down? Here is what it's five day chart now looks like. At 9:32 a.m. this morning it was trading at $25.62 and at 10:02 a.m. it traded down to $24.44. A drop like that on tomorrow's opening would do wonders for these Puts. Let's see what happens. Now this. Thursday morning.
It's not what I was hoping for but at 9:35 a.m. it did drop down to $25.76. You can see that on the chart.
Here is what the markets are doing at 10:33 a.m. These Puts are getting crushed.
An end of the day reading. These Puts are in trouble.
Let's see what happens. Here is it's premarket trading at 8:30 a.m. and 9:00 a.m. These Puts have dropped from $.63 (dollars) when I first started watching them so this blog has being a mistake. Last week when I wrote about this same situation the Puts more than doubled.
Sometimes you see these premarket selloffs occuring only to then watch the markets on them open flat. That often happens with the Tesla stock. As it turns out selling into the premarkets would have gotten you some of your money back as the stock opened flat. Pfizer disappointed this time which I am not happen to report. Last we this strategy turned out wondefully well. Short term option trading on stocks in the $25.00 range is often acknowledged as being a difficult space to be in. I will show you at the end of the trading session how Pfizer closed the day. ** Pfizer went on to have a drop on the following Monday morning. Sometimes one week options are better to play.

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