Butterfly Spread Traded on Dollar Thrifty (DTG)

Shares of Dollar Thrifty Automotive Group, Inc. DTG are higher on the session by 0.15%, currently trading at $48.22. The stock has been moving largely higher over the past five months, though has encountered resistance at $50.00. DTG is scheduled to be acquired by Hertz Global Holdings HTZ in an 80/20-cash/stock transaction. One options trader just executed a butterfly spread on the name. The October $45.00 put was sold, on the bid, 10,000 times (single block) for $1.60, the October $40.00 put was purchased, on the offer, 5,000 times (single block) for $0.65, and the October $50.00 put was purchased, on the offer, 5,000 times (single block) for $4.00. Net debit on the transaction was $0.725 per share. This trader believes that the stock drifts toward the $45.00 strike by October expiration. Dollar Thrifty Automotive Group, Inc. is engaged in the business of the daily rental of vehicles to business and leisure customers through company-owned stores. The company also sells vehicle rental franchises worldwide and provides sales and marketing, reservations, data processing systems, insurance and other services to franchisees. For more great research like this, as well as how to play it through options…please visit Benzinga’s Options & Volatility Edge and Benzinga’s Cash Generator.