No. An implied borrow that is high is when the puts are bid to the point where put call parity needs to be adjusted by the interest rate to make parity.
I love how so many people on here said this WASN'T a short squeeze. You were wrong!! I was right...But of course I optioned my shares away!! Live and learn... My option money was very rich for a reason... Avis Surge Blasts Short Sellers With Billions in Losses, S3 Says (Bloomberg) -- Investors betting against rental-car company Avis Budget Group Inc. are facing about $4.3 billion in losses after the company’s shares more than tripled. Its shares gained as much as 218% at one point Tuesday amid a flurry of trading activity after the rental car company said it will play a big role in the increased adoption of electric cars in the U.S. When the stock was up roughly 181%, the surge pushed mark-to-market losses for short-sellers on the day to $4.29 billion, according to S3 Partners data. The stock is likely to remain a target for a short squeeze with the potential for new investors betting against the company stepping in, Ihor Dusaniwsky, S3 Partners’ managing director of predictive analytics, said by email. “So there may be a game of musical chairs in Avis today, some shorts leaving the game, but other shorts just switching seats with other players.” Bearish bets against the company have jumped in recent months with roughly one-fifth of shares available for trading currently sold short, according to S3 data. That compares to data from IHS Markit which shows the short interest has peeled back to roughly 17% from a mid-September high of 23%. Day's Range 173.00 - 545.11 52 Week Range 28.20 - 545.11
From Yahoo! Finance... A short squeeze was also likely at play as short interest has increased over the last month, according to S3 Partners.
I don't trust those short squeeze reports written by professional writers even if the reports are from a reputable website. just focus on the charts and that should suffice. Between the end of Sept 2021 and 1 Nov 2021, no wise investors/traders were foolish enough to short CAR as CAR was obviously bullish. on 2 Nov 21, wise traders might have shorted CAR. I normally read those reports for entertainment purposes. anyway, have a happy day reading those reports.
@maxinger, more expressive is the "Short % of Float" value of the stock statistics, for example here: https://finance.yahoo.com/quote/CAR/key-statistics?p=CAR. The higher this value the higher the possibility of short squeeze. One better should archive such numbers (ie. all data belonging to a stock) daily, for research and for drawing charts to visually see the development over a time frame...
I thought this was an interesting trade. On another thread, I introduced a backtest of an earnings trading strategy entering long/short calendars and long/short straddles the day before announcement and exiting the day after. One of the signals was CAR LongCalendar as below. I am testing this strategy so I put on one lots on a few to test out slippage and how well the test is tracking the report results. I thought the calendar would get killed with the large move. However, the IV went up so much the long side swamped the short and the trade made 4.91% notional as below. The report shows a long calendar using straddles. I put on a call calendar and had similar results. If there is interest, I can show more about how this strategy works.
I'm confused b/c of this news article: "Tesla drops after Musk tweets that 'no contract has been signed' with Hertz" https://finance.yahoo.com/news/tesl...act-has-been-signed-with-hertz-145626183.html I was under the impression that it was Avis (ticker CAR) that ordered the 100,000 cars from Tesla, and b/c of this the CAR stock rose 108%... But the above article says it was Hertz, not Avis. Anybody can shed a light on these issues, ie. summarize what really happened? Thx Oh, btw, @Matt_ORATS, in your posting above you talk of an "announcement day". What announcement is it (or was it)? And what's the link to the other thread you mention? Thx.
Hertz is getting the Teslas, not Avis. https://www.cnbc.com/2021/11/02/her...arted-delivering-cars-despite-musk-tweet.html Regarding Avis, https://markets.businessinsider.com...e-short-squeeze-elon-musk-hertz-tweet-2021-11
In my view, there is something inherently awry about this idea. I mean, any rental car company that is going to buy all these electric cars better have a plan in place for how these cars are going to get recharged once they leave their facility by renters. What happens when renters run the car out of juice when on vacation, take a cab to the airport and leave? There will have to be a fleet of battery-charging trucks running around to charge these cars to enough power to get them back to the rental agency. That's a lot of cost, no?