$HTZ Puts

It could, and it couldn't. this the nature of the market. However, I will say I like to sell puts on stuff that is tending up, and not catch falling knives. Odds are in favor of a continued down move, but let's see 

i feel you on the falling knife bit, but sometimes the premiums get so fat you cant ignore it even if the chart looking like a ski slope sold a couple $2.5 myself, kinda thinking the whole rental car thing might bounce if travel stays strong through summer

No, I did throw $2k at it for fun on calls and made 60% in my “gambling” account (aka Robinhood lol). But this is actually a good idea, might do this depending on its premarket Monday

Nice play.

HTZ has a long history of gamma squeezes. Ain’t nuthin kn**əw**

So you saying puts bad?

I sold calls.

Interesting point

R3T4RD

Probably for a good reason. Goodluck with that

Well if we believe that market's expectation is always right, we wouldn't be in this business.

Confident_Pillar's point about calls carrying higher IV than the puts here is the whole story on HTZ. Equity puts almost always hold the higher IV because of downside skew. When the calls are bid over the puts like this, the market is pricing an upside tail, which is the squeeze premium showing up in the chain. Two things that does to a put seller. Your puts are the cheaper side of the skew, so you are getting paid for downside on a name whose priced tail risk is actually to the upside. And if the squeeze does not show, a 2 dollar stock does not drift lower, it gaps, and you are sitting on assigned shares that can keep bleeding. If the real thesis is the squeeze, defined risk fits better than naked puts. A put credit spread caps that gap tail, or sell the put and spend a slice of the premium on a cheap OTM call so an actual squeeze does not leave you having sold your upside for pennies.

The one thing I will never sell a put on is a stock that can go to zero. Hertz is under a mountain of debt and could go to zero pretty easily.

I’ve wondered about this. It feels like $1 puts would be safe sans debt bc of reverse stock splits, but i don’t actually know what happens to your put in the event of (1) a reverse split or (2) bankruptcy. Do you know?

Yeah the issue here isn’t a reverse split, it’s impending bankruptcy. Equity holders (you) would get wiped in order to pay off creditors and restructure the business. Ford is a good example of this. They underwent a bankruptcy and are now operating on the other side of that, however all shareholders during their bankruptcy got wiped out.

Understood. I just didn’t know if you’d get put the shares ahead of expiry. I assumed yes, but wasn’t 100% sure. Appreciate your answer. 🙏

Yeah at the end of the day whether or not you get assigned isn’t relevant because the whole position ends up worthless regardless. Always make sure you know what you own!

nope, classic pump n dump. no thx.

I saw this movie before, but it was named $WOLF

🤣🤣