Put buyers rack up some mileage in $HTZ

Put buyers rack up some mileage in $HTZ

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Option traders have racked up large profits in bearish positions on Hertz (HTZ).

On Jul. 12Market Rebellion’s Unusual Activity Service found that 4,000 August $17.50 puts were bought for $0.42 to $0.50 above the existing open interest of 401 contracts with shares at $19.05.

Those puts have traded for as much as $1.35 this session, a 170% return, while the stock fell 14.86% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff with the potential for significant leverage. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position.

HTZ was last down 0.57% at $16.46.

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