Investors with a lot of money to spend have taken a bullish stance on CarMax KMX.
And retail traders should know.
We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with KMX, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 8 options trades for CarMax.
This isn't normal.
The overall sentiment of these big-money traders is split between 87% bullish and 12%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $28,420, and 7, calls, for a total amount of $396,145.
Projected Price Targets
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $65.0 to $75.0 for CarMax during the past quarter.
Insights into Volume & Open Interest
In terms of liquidity and interest, the mean open interest for CarMax options trades today is 1884.0 with a total volume of 3,966.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for CarMax's big money trades within a strike price range of $65.0 to $75.0 over the last 30 days.
CarMax 30-Day Option Volume & Interest Snapshot
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 | BULLISH | 06/21/24 | $2.55 | $2.25 | $2.55 | $72.50 | $167.7K | 870 | 3 |
| KMX | CALL | SWEEP | BULLISH | 06/21/24 | $2.55 | $2.45 | $2.54 | $72.50 | $67.8K | 870 | 1.0K |
| KMX | CALL | SWEEP | BULLISH | 06/21/24 | $2.45 | $2.4 | $2.4 | $72.50 | $42.9K | 870 | 1.3K |
| KMX | CALL | SWEEP | BULLISH | 06/21/24 | $2.4 | $2.3 | $2.35 | $72.50 | $31.0K | 870 | 730 |
| KMX | CALL | SWEEP | BULLISH | 06/21/24 | $2.45 | $2.35 | $2.45 | $72.50 | $30.3K | 870 | 1.3K |
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.
After a thorough review of the options trading surrounding CarMax, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
CarMax's Current Market Status
- Trading volume stands at 470,640, with KMX's price down by -0.24%, positioned at $69.75.
- RSI indicators show the stock to be is currently neutral between overbought and oversold.
- Earnings announcement expected in 4 days.
What The Experts Say On CarMax
Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $68.0.
- An analyst from Evercore ISI Group has decided to maintain their In-Line rating on CarMax, which currently sits at a price target 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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