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!