Avis Budget Group saw upside option activity for the second time in three sessions yesterday (Thursday).
On Tuesday the August 17 calls were purchased for $1.40. Yesterday traders were buying the August 20s for $0.35, with more than 6,000 trading against open interest of just 476 contracts, according to OptionMonster's real-time tracking systems.
CAR has been on a nice run and yesterday's session up 2.32 percent to $17.17. The car-rental stock was trading down around $9 last summer and more than doubled by mid-April. (See ticker for the today's quotes.) More recently it has pulled back to its 100-day moving average, and now the bulls are looking for it to rev back up.
For the calls purchased yesterday to turn a profit, the stock must gain more than 18.5 percent by the time the options expire on Aug. 19.
More than 8,000 option contracts traded in the name yesterday, versus average daily volume of about 1,900. Calls outnumbered puts by 35 to 1.
Pete Najarian has no positions in CAR.
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