For anyone who wasn't watching the HTZ pump from last week, Bill Ackman announced a stake in Hertz and the stock went parabolic. Fundamentally, this junk stock is shooting up despite losing money and showing no material signs of a turn around.
But HTZ isn't trading on fundamentals, not yet at least. Right now I'm just watching the 50, 100, and 200 SMA lines. Since the Ackman pump, HTZ has been bouncing hard whenever price is about to fall below the 200 SMA on the 15 minute candle chart.
That is, until yesterday when price finally stayed below the 200 SMA. To add to that, both the 50 SMA and 100 SMA finally crossed below the 200 SMA on the 15 minute candle chart.
Shares aren't hard to borrow anymore and a lot of shorts have likely bought to cover. All that needs to happen now is retail FOMO buyers from last week taking profits. Idk about the optimal strike price for puts, but I do know that there were a ton of $10 ITM puts bought last week that could appreciate in value if the stock price craters.
If you bought at $5, then you probably made a killing. But for those that came late and bought at $9, the ship likely sailed already. Now looks like the time to be shorting this overextended pump, in my regarded opinion. Of course, I'm just a lurker who might get margin called into oblivion if my short position runs against me and price memes into the stratosphere.
