Overview
- CAR, which fell 38% Wednesday, dropped about 40% on Thursday in a violent unwind that triggered eight trading halts.
- Risk signals spiked Wednesday as options volume topped 200,000 contracts and implied volatility hit about 235%, prompting Charles Schwab to require 100% cash for concentrated CAR trades.
- JPMorgan cut the stock to Underweight on Thursday with a $165 price target, saying the surge rose far beyond what profits can justify.
- A tiny tradable float near 10.1 million shares, short interest around 25% of shares outstanding, and large stakes by SRS and Pentwater near 71% choked supply and powered the squeeze.
- Avis set April 29 for its first‑quarter report, and traders are watching for any move to tap a previously authorized 5 million‑share sale that could expand the float and likely end the squeeze.