Buy Dollar Thrifty Options for 125% Return, MKM Says

Investors can still profit from a potential bidding war for Dollar Thrifty Automotive Group Inc. by buying bullish options on the rental-car company, MKM Partners LP said.

MKM “has an even higher level of conviction about how events will play out over the next several weeks” as Hertz Global Holdings Inc. and Avis Budget Group Inc. compete to buy the Tulsa, Oklahoma-based company, options strategist Jim Strugger wrote in a note today after meeting with Hertz management yesterday. “The opportunity still exists to set up a trade in August expiration that could return more than 125 percent.”