Call Spread on CAR on 12/8/2014

Bullish Cup & Handle on CARAvis Budget Group, Inc. (CAR) provides car and truck rentals, car sharing, and ancillary services to businesses and consumers worldwide.

The company has three segments: North America, International, and Truck Rental.

It operates the Avis car rental system with approximately 5,450 locations, that supply rental cars to the premium commercial and leisure segments of the travel industry; the Budget vehicle rental system with approximately 3,350 car rental locations, which serve the value-conscious segments of the industry; Zipcar, a membership-based car sharing network that provides vehicles to approximately 860,000 members; and the Payless brand, which comprises approximately 125 vehicle rental locations, as well as operates Apex brand primarily in the deep-value segment of the car rental industry with approximately 19 rental locations.

The company also operates local and one-way truck rental businesses with a fleet of approximately 23,000 trucks, which are rented through a network of approximately 1,300 dealers and 350 company-operated locations that serve the consumer and light commercial sectors. In addition, it provides a range of optional insurance products and coverages, such as supplemental liability insurance, personal accident insurance, personal effects protection, physical damage waivers, automobile towing protection, and cargo insurance.

Shares have formed a bullish "cup & handle" and higher share prices are expected for this stock.

52-Week Trading Range: $35.56 to $69.76

Last Trade: $62.98 

Trade

  • Buy 1 January $62.50 Call at $3.10
  • Sell 1 January $67.50 Call at $1.00
  • For a net debit of $2.10

Profit/Loss Analysis

  • Breakeven at $64.60
  • Maximum profit is $290.00 at strike of $68.00
  • Maximum loss is ($210.00) at strike of $62.00

Closing Summary

  • Sold 1 January $62.50 Call at $5.00
  • Bought 1 January $67.50 Call at $1.50

Position closed on 12/30/2014 at price of $3.50 with a 66.67% gain in 22 days.

Updates

12/30/2014 9:42:54 AM

We are taking profits on CAR Call Spread. 

Back to Portfolio