Avis Budget Group, Inc. (CAR) is a New Jersey based car and truck rental provider for both business and retail consumers. As of the close of today’s trading session, CAR finished higher by 9.95%, closing at 64.48 on the day. The stock is now just under five points off of its 52 week highs after today’s impressive rally.
Earlier this morning, just before 11:40AM CST, OptionHacker detected and flagged an unusually large, bullish transaction labeled as a buy-to-open in the Feb ’15 72.5 calls that would prove to be an extremely profitable trade for the day. This opening transaction took place when a buyer lifted the offer for $0.55 on a large order of 655 contracts that went off against an open interest of just 38. This initial order was followed up by other large buys in the same strike, and before 12:00PM CST over 2,500 of the Feb ’15 72.5 calls had traded, paving the way for a 7.8x usual daily options volume in CAR. The initial call buy flagged by OptionHacker took place as the stock was beginning to push through 63.00 resistance on the daily chart, and the rally continued as the stock pushed higher by just under 10% on the day. The Feb ’15 72.5 calls that were flagged by OptionHacker traded as high as 1.05 on the session, making this an extremely profitable trade if taken from the 0.55 entry as highlighted earlier this afternoon.
Trade: A trader bought 655 CAR Feb 72.5 Calls for $0.55
Risk: $55 per 1 lot