Shares of Hertz sold off with the rest of the market yesterday, but some option traders were looking for upside into September.
The September 15 call options got active early and remained in demand all day, according to OptionMonster's real-time tracking systems. Some large blocks traded for $0.70 to $0.75 as volume pushed toward open interest around 13,000.
The car rental stock fell along with the S&P 500, and they just kept on buying, taking advantage of premiums down in the $0.40 to $0.50 range. By the end of the session, more than 23,000 contracts had changed hands.
Earnings were scheduled for after the close, and those traders proved correct in looking for a bullish outcome. Profit beat forecasts on strong demand for rental cars, and management hiked guidance for the full year. Shares climbed 4 percent in extended-hours trading after ending the regular session down 6.81 percent to $12.99. (See ticker for today's Hertz quotes.)
Amid all that activity before the release, HTZ's total options volume was 11 times greater than average. Almost 3 calls traded for every 1 put, so it was definitely a bullish session for options despite the stock drop.
Disclosures:
Pete Najarian is long HTZ calls.
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Options Trading School:
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.
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