Half of my limit order filled today.
music selection: “If I Go Away” — Savatage
Hertz rental is a doomed company. It’s stock has seen strange behavior during COVID-19 while people are suddenly at home with time on their hands have access to commission free trades with RobinHood and other apps have bid it past reason.
I feel it is certain the shares will be worth near zero by the time the 21JAN2022 LEAPs expire. This seems to be the consensus. Strangely, the options market is pricing the premium on 1.5 strike puts as if the stock is expected to have some residual value. I put in a limit order for 10 puts at 65 cents a share a couple weeks ago. The price got close but has been range bound around 70 to 75 cents since then. I went ahead and upped my limit order to 70 cents. Half of my contracts cleared the market. It is likely the rest will clear market tomorrow.
Should shares ultimately be worthless as management is guiding, I will earn 80 cents per share in profit on 70 cents at risk. That is greater than a double on a more or less sure bet. I like my chances.
Devour your prey raptors!