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Why Hertz Calls On A Early Thursday Afternoon Don't Work

First the chart. On paper it looks like this chart could rebound. Here is one series of it's "in-the-money" Calls. Here are three reasons why this situation is to dangerous to play. 1) There is a Avis Budget Group Inc. implosion happening today. A really big one. Read my previous blog. That's not directly related to this company but it makes the sector a bad space to be in. 2) The "bid-and-ask" spread is to far apart which helps to give the market makers some extra insurance. That plus the volume of trading is very light which also seems to give the house an advantage. Look Walmart.The spread is about the same but you can split the middle without affecting the "bids-and-asks" and the volumes are so much better. I like trading in that kind of space better. 3) Hertz is not the kind of company which comes out with daily or weekly updates. Contrast this to the stock Ford which seems to have good and bad news coming out every other day. With Ford so...
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Avis Budget. A New Turn In The Road

I blogged about this one the day before. Here is todays action at 11:a.m..
The stock took a massive hit. Is the short squeeze unwinding? Let's move onto Thursday morning.
That's a drop of over 400 dollars in two trading sessions. Now a look at these two series of Puts at 11:00 A.M. on Thursday morning. Look at the volume of trading in the second series shown.
...
So many questions can now be asked? Is this a "catching a falling knife syndrome? Is this stock going back down to the $100.00 like it was trading at last month? Might it now catch a slight rebound? If you just made in the last two days like $50,000 playing the Puts starting with $5,000 would you now risk like $5,000 again and throw it back into tomorrow's expiring $255.00 Calls? Thousands of traders are now glued to their chairs watching this unprecedented action.
Might you buy next week's out 255 Call series?
To help better put this into perspective here is it's one year chart.
Thursdays at noon are an interesting time for short term option traders. To be continued.

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