finance
Avis Budget Group Stock Surges to Record High Near $850 Before Dropping 38% to Close at $417
Shares of Avis Budget Group surged from under $100 last month to a peak near $850 in early Wednesday trading before reversing sharply. The stock closed down 38% that day and fell another 6% in premarket trading on Thursday, with high options volume and volatility reported. Trading conditions included margin requirement changes and controls by major shareholders.
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Com reported. The shares closed down 38% on Wednesday and declined another 6% in premarket trading on Thursday. They were last trading around $417 a share. Options volume for Avis Budget Group exceeded 200,000 contracts on Wednesday.
Implied volatility for options on the stock reached 235% that day, compared to 20% for the S&P 500. Margin requirements for trading Avis Budget Group changed on April 9, according to sources at Charles Schwab. Those sources stated that margin requirements did not increase on Tuesday.
Com reported. Avis Budget Group traded over 10 million shares in the last two days. The company has 36 million outstanding shares. Pentwater Capital Management controls shares of Avis Budget Group. SRS Investment Management also controls shares of the company.
Com reported.
