Options Insight: How to Play Avis Budget Group

The video discusses the current state of economic expansion in the US, highlighting that it has been seven years since the last recession. It emphasizes the structural elevation of volatility during deep economic expansions and the cyclical peaks and troughs within this period. The discussion also covers the potential for a recession two years after the Fed begins tightening. The second part of the video focuses on the rental car industry, analyzing the impact of Uber and other factors on the market. It suggests potential investment opportunities in rental car companies, particularly Hertz, due to improved pricing and the upcoming summer vacation season.

What is one reason for the return to volatility during long economic expansions?

• Volatility is unaffected by economic cycles.

• Volatility remains structurally elevated.

• Volatility only increases during recessions.

• Volatility decreases as the economy grows.

According to historical trends, how long after the Federal Reserve begins tightening does a recession typically occur?

• Two years

• One year

• Five years

• Three years

What has been a significant factor affecting rental car companies in recent years?

• Improved pricing strategies

• Decreased fleet costs

• Competition from Uber and ridesharing services

• Increased demand for rental cars

What historical event in 2012 significantly impacted the rental car market?

• The acquisition of Dollar Thrifty Group by Hertz

• The introduction of autonomous cars

• The merger of Uber and Lyft

• The rise of electric vehicles

What is the proposed trading strategy for Hertz mentioned in the transcript?

• Buy a 3237 call spread for August

• Sell 12 strike calls for September

• Buy 12 strike calls for September

• Short sell Hertz stocks