Hertz Global shot to a long-term high earlier this week along with other car-rental stocks, but yesterday the options paper was bearish.
OptionMonster's tracking programs detected the purchase of about 3,000 April 23 puts against previous open interest of just 289 contracts. The early blocks priced for $0.65 to $0.70, and then inflated to as much as $1.15 as the shares pushed lower.
Puts lock in the price where investors can sell stock, which can provide big leverage in a pullback. They're used by shareholders looking to hedge against a drop, or by traders hoping to profit from a drop.