A deal by Hertz Global Holdings to repurchase the bulk of its $1.5 billion of preferred stock could pave the way for a large stock repurchase program. The prospect of a sizable buyback is lifting Hertz shares. Shares of Hertz (ticker: HTZ) were up 6.4% on Wednesday, to $23.38.

There were two large and bullish options trades Wednesday in Hertz stock. The buyers paid about $1 per contract for those call spreads. “It looks like the buyback will be significant,” says Chris Warren, a distressed debt and special situations analyst at Odeon Capital Group.

A potential buyback would amount to about 30% of Hertz’s current market value of $10.5 billion. Hertz declined to comment on the prospects for a buyback. The float in the stock is a small percentage of the roughly 463 million shares outstanding.
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