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Doubling Down Rental Car Shorts – CAR & HTZ

I am doubling my exposure to the rental car shorts.

music selection:  “Same Old Song And Dance” — Aerosmith

Originally, I set up my rental car shorts as a paired trade, each half a normal short position at 2,500 each.  Today, I am making each a full position at 5,000 each.

I sold short 125 shares of CAR at 22.40.  Avis currently has 1,017 in accumulated unrealized short term capital gains.  The initial trade is down 34.04%.  I expect more pain in the future for this company.

I also sold short 286 shares of HTZ at 9.66.  Hertz currently has 2,655 in accumulated unrealized short term capital gains.  The initial trade is down 73.75%.  Hertz could be going to near zero and Avis might not be too far behind.

I would also short Enterprise Rent A Car but they are privately held. Because of industry consolidation, there are no more material players left.

Devour your prey raptors!

 

{ 3 comments… add one }
  • Chris B May 26, 2017, 3:21 pm

    I’m sure you’ve also looked into shorting retailers, right?

    • The Lizard King May 26, 2017, 6:49 pm

      That might be next. They would probably have to be synthetic shorts because a lot of retailers are popular shorts right now, making shares hard to borrow and thus expensive to borrow. I would probably lean towards a synthetic on some of the big mall REITs.

  • Joe June 1, 2017, 6:11 am

    Great calls on these two.

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