What I do see is the bump on no volume compared to most recent minor upswings, major debt and bad earnings.
Mostly, I was curious of your choice of 170 strike, do you believe a lower strike will be breached?
I'll take a few minutes on this trade...For better or worse.
1. Hertz may go under soon. All those people with bonus points will be ticked...May switch.
2. Budget/Avis (from now on CAR) had the used cars during the pandemic...They sold many for a good price. Also after the pandemic, people wanted to travel (delayed seeing friends and family). Hence the $10. special dividend.
3. They could have used that dividend for paying down their debt...But chose to pay it out, believing they could go into the open markets for their new bond. The new bond started out at $500,000,000...Which they upped to $700,000,000.
4. CAR (unlike Hertz) did not go heavy into electric vehicles.
5. CAR has their truck fleet...Good profit makers.
6. Rich option premium.
7. I already had 200 shares called away. I like to hold onto quality companies. Yeah, they were lucky about the pandemic...I get it. I did not want this company called away. They have established their locations (airports/downtown). They are a mature company with market share.
8. Because of the liability from the attorney/personal injury networks, I do NOT see autonomous self driving cars (in the US) for maybe 20 years. The government is forcing Uber and Lyft drivers to become employees. There is a market for rental cars!!
9. I just wanted a small option premium (on a fair/good company) while I wait and see. This looks like a long term hold for me...Through a recession.
10. This is a mature company...You don't need a huge ad campaign for this company! They don't need to develop a market...The market comes to them. $500. for this subcompact for a week...Take it or leave it. If you need it (not just want it), you'll take it mumbling under your breath...
PS With the Fed drop of 1/2 of 1%, you will find cheaper financing in the Budget/Avis used car lots...
