Investors in Avis Budget Group Inc (CAR) can now trade new options set to expire in December 2028, with 975 days until expiration. A notable put contract at a $370 strike price is currently bid at $163.20, allowing investors to effectively lower their cost basis to $206.80 per share if exercised, compared to the current market price of $381.54. This represents a potential discount of approximately 3%, with an 81% chance that the put could expire worthless, yielding a 44.11% return on the cash commitment.
On the call side, a contract at a $510 strike price is bid at $174.00. If traders purchase shares at the current price and then sell this call, they commit to selling at $510, translating to a projected total return of 79.27% if exercised. However, the call has a 29% chance of expiring worthless, which would still allow investors to retain shares and the premium earned, marking a 45.60% additional return. The implied volatility for the put contract is 92%, while it is 82% for the call.
