HTZ Is Squeezing—Is There More Left?

Good morning, traders!

One of the strongest penny stocks over the last two sessions has been Hertz Global Holdings, ticker HTZ—and the move is getting even more interesting this morning.

HTZ closed Thursday at $2.02 after gaining 29.5%. As of approximately 8:00 a.m. today, the stock is trading around $2.52–$2.53, adding another 25% in the premarket.

That means HTZ has climbed approximately 62% from Wednesday’s $1.56 close—and it has already traded more than 10 million premarket shares this morning.

What is driving this move?

Hertz reported much better second-quarter results than Wall Street expected. The company posted an adjusted loss of $0.11 per share versus an expected loss of approximately $0.24. Revenue reached $2.40 billion, beating estimates near $2.27 billion and increasing roughly 10% from last year.

Hertz also generated $81 million in adjusted EBITDA, reaching the high end of its previous guidance. Revenue per rental unit increased 8% year over year, showing that the company generated more revenue despite operating with a slightly smaller fleet.

Management expects third-quarter adjusted corporate EBITDA between $275 million and $325 million, along with positive earnings per share. That outlook appears to be giving traders more confidence that Hertz’s turnaround is beginning to gain traction.

The earnings beat is only half the story.

Nearly 30% of HTZ’s tradable shares were reportedly sold short entering the earnings report. When a heavily shorted stock delivers unexpectedly positive news and begins moving higher, bearish traders may be forced to buy shares to close their positions.

That additional buying can create a short squeeze—and it appears that short covering is helping fuel the move in HTZ.

Here are the levels I would watch today:

The first key area is $2.50. If HTZ holds above $2.50 following the opening volatility, buyers may attempt to push through the premarket high around $2.58.

A clean break above $2.58 with strong volume could open the door to $2.70–$2.75. If the squeeze becomes aggressive, traders may begin watching the psychological $3 level.

On the downside, a loss of $2.40 followed by a failed VWAP reclaim would be a warning that the premarket move is beginning to fade.

Remember that HTZ has already made an enormous two-day move. This is not a stock to chase blindly at the opening bell. Short squeezes can continue much further than expected, but they can also reverse extremely quickly.

Let the opening volatility settle, wait for a clear technical setup and always manage risk carefully.

Here are two options ideas I also have on my radar today:

INTC August 14 calls

Intel is trading above the important $100 level this morning as semiconductor stocks show renewed strength.

The company has a fresh catalyst after SpaceX and Tesla announced plans for a massive semiconductor manufacturing complex in Texas, with Intel reportedly involved in supporting the project’s chip-manufacturing capabilities.

Intel’s latest quarter also showed meaningful improvement. Revenue increased 25% to $16.1 billion, while data-center and AI revenue jumped 59% to $6.3 billion.

I would want INTC to hold $100 and VWAP, followed by a high-volume break above approximately $101.50. Traders can then examine the August 14 calls slightly above the stock price while staying within their individual price and risk limits.

SOFI August 14 $18 calls

SOFI remains one of my favorite affordable options chains because it normally offers strong volume, substantial open interest and tight bid-and-ask spreads.

The company recently reported revenue of approximately $1.21 billion versus $1.11 billion expected and earnings of $0.12 per share versus $0.11 expected. The stock initially sold off following the report but has recovered from the low-$15 area toward $18.

SOFI has also experienced substantial bullish options activity, with hundreds of thousands of calls trading during recent sessions.

I would watch for SOFI to hold $17.75–$18, remain above VWAP and break through approximately $18.25. If those conditions develop, the August 14 $18 calls could offer an affordable continuation setup.

Today’s key watchlist:

HTZ above $2.50 for potential short-squeeze continuation.

INTC above $101.50 for semiconductor momentum.

SOFI above $18.25 for a bullish recovery breakout.

Which one are you watching most closely today?

To your success,

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