Financial giants have made a conspicuous bearish move on CarMax. Our analysis of options history for CarMax KMX revealed 8 unusual trades.
Delving into the details, we found 37% of traders were bullish, while 50% showed bearish tendencies. Out of all the trades we spotted, 2 were puts, with a value of $62,460, and 6 were calls, valued at $900,952.
What's The Price Target?
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $65.0 and $80.0 for CarMax, spanning the last three months.
Analyzing Volume & Open Interest
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in CarMax's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to CarMax's substantial trades, within a strike price spectrum from $65.0 to $80.0 over the preceding 30 days.
CarMax Call and Put Volume: 30-Day Overview
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| KMX | CALL | SWEEP | NEUTRAL | 07/19/24 | $1.5 | $1.45 | $1.5 | $80.00 | $394.1K | 1.0K | 2.9K |
| KMX | CALL | SWEEP | BEARISH | 07/19/24 | $1.65 | $1.6 | $1.65 | $80.00 | $303.6K | 1.0K | 2 |
| KMX | CALL | SWEEP | BULLISH | 07/19/24 | $7.3 | $6.9 | $7.3 | $67.50 | $72.1K | 602 | 0 |
| KMX | CALL | SWEEP | BEARISH | 07/19/24 | $1.8 | $1.7 | $1.7 | $80.00 | $46.0K | 1.0K | 2 |
| KMX | CALL | SWEEP | BEARISH | 07/19/24 | $1.8 | $1.7 | $1.7 | $80.00 | $45.2K | 1.0K | 2 |
About CarMax
CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.
Current Position of CarMax
- Currently trading with a volume of 472,101, the KMX's price is up by 5.57%, now at $72.72.
- RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
- Anticipated earnings release is in 9 days.
Expert Opinions on CarMax
In the last month, 2 experts released ratings on this stock with an average target price of $79.0.
- In a cautious move, an analyst from Wedbush downgraded its rating to Outperform, setting a price target of $90.
- Consistent in their evaluation, an analyst from Evercore ISI Group keeps a In-Line rating on CarMax with a target price of $68.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for CarMax with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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