Avis Budget Group's stock skyrocketed by nearly 200% in early April, marking one of the most dramatic monthly gains among major rental car operators. The surge unfolded around a key options expiration date, driving the share price from under $100 to triple its February level.

Hedge fund Pentwater Capital built a significant position in in-the-money call options while the stock traded below $100 and, in late March, exercised a massive block. This forced delivery of millions of shares, slashing the available float and igniting the supply squeeze that sparked the rally.

With roughly 49% of tradeable shares sold short, each upward move compelled bears to buy back stock to limit losses, fueling further price gains. Retail traders also contributed by targeting the heavily shorted name, amplifying the squeeze dynamics.

Extended airport security lines caused by federal funding lapses for TSA officers prompted travelers to choose road trips, boosting rental demand. However, the company posted a $995 million net loss last year due to an EV fleet write-down, carries over $25 billion in debt against about $500 million in cash, and faces normalized pricing after the pandemic boom.