Unusual Call Volume In Hertz

According to Options and Volatility, shares of

saw unusually high options activity on Tuesday. Notably, the July 18 calls traded 30,348 contracts versus only 536 open interest. The July 17 calls traded 21,569 contracts versus only 64 open interest. The July 19 and 20.50 calls also had above average volume. In addition to the increased volume, the implied volatility on the July 19 calls rose dramatically, moving from 47.78 on Monday's close to 57.99 on the close Tuesday, an increase of nearly 21 percent. The Implied volatility on the July 18 calls increased as well, moving from 50.32 to 58.01. This set up a covered call opportunity, buying shares of HTZ and selling either a July 17 or July 18 call for each 100 shares purchased. Options and Volatility noted this captures the implied volatility edge and positions bullishly along with the large call buyer. The July 17 calls have a delta of 71, while the July 17 covered call position has a less bullish delta of 29. The July 18 calls have a delta of 47, while the July 18 covered call position has a slightly more bullish delta of 53. Shares of Hertz closed at $17.75. Shares were down 3 percent Wednesday morning.