Hertz Global Surges 9.5% on Amazon Partnership: Rental Car Giant's Strategic Shift Sparks Market Frenzy

Summary
• Hertz Global (HTZ) rockets 9.49% to $5.88, breaking intraday highs of $5.95
• Amazon Autos partnership to sell used Hertz vehicles sparks sector buzz
• Avis Budget Group (CAR) surges 5.74% as rental car sector gains momentum

Today’s explosive move in Hertz Global reflects a seismic shift in the rental car industry. With Amazon’s entry into used car sales and Hertz’s strategic pivot, the stock has surged past key resistance levels. The partnership’s potential to unlock value in Hertz’s massive used vehicle inventory has ignited investor optimism, while sector peers like Avis Budget Group also rally on shared industry tailwinds.

Amazon Partnership Unlocks Hertz’s Used Car Goldmine
Hertz’s collaboration with Amazon Autos to sell used vehicles online has directly fueled today’s 9.5% surge. The partnership leverages Hertz’s existing fleet of 45 U.S. locations and Amazon’s digital retail infrastructure, creating a scalable platform to monetize its high-turnover used car inventory. This strategic shift addresses long-standing concerns about Hertz’s reliance on rental operations alone, while Amazon’s brand credibility and logistics network reduce buyer hesitancy. The news also aligns with broader industry trends, as rental companies increasingly pivot toward remarketing to offset fleet maintenance costs.

Rental Car Sector Gains Momentum as Hertz and Avis Lead Charge
The rental car sector is experiencing synchronized gains, with Avis Budget Group (CAR) rising 5.74% alongside Hertz’s 9.5% rally. Both companies benefit from shared tailwinds: rising used car prices, improved fleet utilization, and digital transformation in remarketing. Hertz’s Amazon partnership amplifies its competitive edge, while Avis’s recent focus on fleet optimization and cost-cutting measures reinforces sector-wide optimism. The sector’s collective momentum suggests a broader re-rating of rental car companies’ ability to monetize their asset bases.

Options Playbook: Capitalizing on Hertz’s Volatility and Sector Synergy
• Technical Indicators:
- 200-day average: $5.16 (below current price)
- RSI: 38.26 (oversold territory)
- MACD: -0.44 (bullish divergence)
- Bollinger Bands: $4.51–$7.11 (price near upper band)

Trading Setup: Hertz’s price action suggests a short-term breakout above the 200-day average and key resistance at $5.95. The RSI’s oversold reading and MACD divergence hint at potential continuation. Sector momentum, led by Avis’s 5.74% gain, adds conviction to a bullish stance.

Top Options:
• HTZ20250829C5.5
- Call option, strike $5.50, expires 2025-08-29
- IV: 82.45% (high volatility)
- LVR: 11.73% (moderate leverage)
- Delta: 0.72 (high sensitivity)
- Theta: -0.035 (rapid time decay)
- Gamma: 0.467 (strong price sensitivity)
- Turnover: $71,230 (high liquidity)
- Why: High gamma and delta make this ideal for a short-term breakout play. A 5% upside to $6.17 would yield a 127% gain (payoff: $0.67).

• HTZ20250919C6.5
- Call option, strike $6.50, expires 2025-09-19
- IV: 81.55% (moderate volatility)
- LVR: 18.92% (high leverage)
- Delta: 0.375 (moderate sensitivity)
- Theta: -0.0116 (moderate decay)
- Gamma: 0.281 (responsive to price swings)
- Turnover: $21,283 (solid liquidity)
- Why: High leverage and gamma position this for a mid-term rally. A 5% move to $6.17 would generate a 55% gain (payoff: $0.67).

Action: Aggressive bulls should target HTZ20250829C5.5 for a 1–2 day breakout, while longer-term players may build a position in HTZ20250919C6.5. Monitor the $5.95 intraday high as a critical pivot.

Backtest Hertz Global Stock Performance
The 9% intraday surge in HTZ has historically led to mixed short-to-medium-term performance. While the 3-day win rate is high at 44.55%, the returns over 10 and 30 days are negative at -0.07% and -1.89%, respectively. This suggests that while HTZ may experience a short-term bounce, it is prone to giving up gains in the medium term.

Hertz’s Amazon Bet: A Catalyst for Sector Re-Rating
Hertz’s strategic pivot to digital remarketing through Amazon represents a paradigm shift in the rental car industry. The stock’s 9.5% surge and Avis’s 5.74% rally signal growing investor confidence in the sector’s ability to monetize used assets. With technicals favoring a continuation above $5.95 and options like HTZ20250829C5.5 offering explosive potential, the near-term outlook is bullish. Investors should watch the $5.95 level for confirmation and the $4.51 lower Bollinger Band as a stop-loss reference. The sector’s momentum, led by Avis’s gains, suggests this is more than a one-off rally—this is a re-rating in progress.