Volatility Purchased on Hertz Global (HTZ)

Shares of Hertz Global Holdings (HTZ) are trading lower on the session by 2.03%, at $14.51. The stock has remained range bound over the past two months following a sharp spike higher in late August.

With HTZ’s ongoing battle with the Federal Trade Commission to acquire Dollar Thrifty Automotive Group (DTG) lengthened once again this morning, one player is buying volatility. A short while ago, the December $10/13 strangle was purchased 7,087 times, on or near the offer, for $2.10-2.15.

Given current open interest on the strikes, 7,066 and 8,769 contracts respectively, it is unclear whether this is the closing of an existing short vol position or the execution of a fresh long vol position. In either case, the trader is voicing the opinion that HTZ can and will start to gyrate in the coming weeks and months.

30-day implied volatility is up 5.2% on the session to 39.07%, while 10-day and 30-day historical volatility remain at 30.26% and 29.36%. 

Hertz Global Holdings, Inc. is a holding company. The Hertz Corporation is its operating company and a direct wholly owned subsidiary of Hertz Investors, Inc., which is wholly owned by Hertz Holdings. 

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.