I am selling calls at insane Vol on HTZ. The damn thing is in BK, not maybe, but already for a while. The only argument is that for some reason the equity will come out whole? As of latest Q there was $25.8 billion in assets and $1.49 billion in equity. Include in that a few hundred million already spent on Chapter 11 costs and Covid shut down expenses and there is no equity left. (Yeah I am always blown away what the cost of Chapter 11 filings are.) I cannot get a borrow for HTZ stock and it is my guess there were a lot of people shorting HTZ assuming the equity would be an easy zero and then they ran into a short covering rally mixed in with Robin Hood millenials. Sorry for the short write-up. Not sure what more there is to add.
Also, CFO just sold shares around $1. Directors sold too. I guess they too don't think the equity will survive.
I do not hold a position with the issuer such as employment, directorship, or consultancy. I and/or others I advise hold a material investment in the issuer's securities.
Catalyst
Short covering rally ending and implied vol collapsing.
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