New Options for Avis Budget Group Offer Potential Profits

Investors in Avis Budget Group Inc (Symbol: CAR) saw new options begin trading today, with an expiration date set for March 2026. A significant factor influencing the price of these options is the time value. With 340 days remaining until expiration, the newly trading contracts may present an opportunity for put or call sellers to secure higher premiums compared to contracts with shorter time frames. At Stock Options Channel, our YieldBoost formula has analyzed the CAR options chain for the March 2026 contracts and pinpointed a specific put and call contract of interest.

The put contract at a $65.00 strike price currently holds a bid of $12.20. Selling-to-open this put contract commits an investor to purchase the Stock at $65.00, with the premium collected lowering the effective cost basis to $52.80 (before broker commissions). For those considering purchasing CAR shares, this might be an appealing alternative to paying the current market price of $69.64 per share.

The $65.00 strike price reflects an approximate 7% discount from the current trading price of the Stock—indicating it’s out-of-the-money by that percentage. Current analytical data, including various greeks and implied greeks, suggest a 70% chance that the put contract may expire worthless. Stock Options Channel will monitor these odds over time, providing updates and a chart on our website’s contract detail page. If the contract were to expire worthless, the premium would yield an 18.77% return on the cash commitment, or 20.15% annualized—a figure we term as YieldBoost.

Accompanying this is a chart illustrating the trailing twelve-month trading history for Avis Budget Group Inc, highlighting the position of the $65.00 strike against this historical data:

Shifting our focus to the calls side of the option chain, the call contract at the $80.00 strike price currently shows a bid of $13.50. Should an investor buy CAR shares at the current price of $69.64 and sell-to-open this call contract as a “covered call,” they commit to selling the Stock at $80.00. When factoring in the premium received, this strategy could produce a total return of 34.26% if the Stock is called away at the March 2026 expiration (excluding any dividends). However, if CAR shares experience significant increases, potential gains could be capped. Hence, analyzing the past twelve-month trading history and business fundamentals becomes essential. Below is a chart illustrating CAR’s trailing twelve-month trading history, with the $80.00 strike highlighted in red:

The $80.00 strike represents roughly a 15% premium over the current trading price of the Stock, indicating it is also out-of-the-money by that amount. There is, therefore, a chance that the covered call may expire worthless, allowing the investor to retain both their shares and the premium. Currently, analytical data indicates a 42% probability of this outcome. Stock Options Channel will track these likelihoods and offer updated visuals on the website’s contract detail page, including a chart of the option’s trading history. If the covered call does expire worthless, the premium would represent a 19.39% increase in returns—20.81% annualized—referring to this as YieldBoost.

The implied volatility for the put contract stands at 70%, while the call contract’s implied volatility is at 68%. In contrast, we calculate the actual trailing twelve-month volatility, based on the past 250 trading day closing values along with today’s price of $69.64, to be 64%. For additional put and call options ideas worth considering, visit StockOptionsChannel.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.