A $2 put for Jan 22 is currently trading with a 1.60-1.75 spread, meaning the break-even point is $0.25-0.40. Not much reward to have there. No shares available to short either.
Yes, but you would also sell the call for 0.80.
Good point. Are you making that trade?
No. I've considered it but it would not make for a fun time if the crazies bid Hertz up significantly.
That's the thing - tough to know how long a bubble lasts for. And choosing a time horizon based on the court system is difficult because bankruptcy proceedings can drag on for a long long long time.
Selling call credit spreads has been wildly profitable for me, especially when the stock was around $5. If it runs back up again, I'll probably sell more.
With this methodology you get the upside of likely decline in price without having to pay the massive premiums for puts.