A Closer Look at Carvana's Options Market Dynamics

High-rolling investors have positioned themselves bearish on Carvana CVNA, and it's important for retail traders to take note. \This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in CVNA often signals that someone has privileged information.

Today, Benzinga's options scanner spotted 11 options trades for Carvana. This is not a typical pattern.

The sentiment among these major traders is split, with 36% bullish and 54% bearish. Among all the options we identified, there was one put, amounting to $37,920, and 10 calls, totaling $672,106.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $100.0 to $130.0 for Carvana over the last 3 months.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Carvana's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Carvana's whale trades within a strike price range from $100.0 to $130.0 in the last 30 days.

Carvana Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

About Carvana

Carvana Co is an e-commerce platform for buying and selling used cars. The company derives revenue from used vehicle sales, wholesale vehicle sales and other sales and revenues. The other sales and revenues include sales of loans originated and sold in securitization transactions or to financing partners, commissions received on VSCs and sales of GAP waiver coverage. The foundation of the business is retail vehicle unit sales. This drives the majority of the revenue and allows the company to capture additional revenue streams associated with financing, VSCs, auto insurance and GAP waiver coverage, as well as trade-in vehicles.

In light of the recent options history for Carvana, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Where Is Carvana Standing Right Now?

• With a trading volume of 935,860, the price of CVNA is up by 2.18%, reaching $115.45.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 23 days from now.

What The Experts Say On Carvana

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $139.33333333333334.

• Consistent in their evaluation, an analyst from Evercore ISI Group keeps a In-Line rating on Carvana with a target price of $118.
• Maintaining their stance, an analyst from JP Morgan continues to hold a Overweight rating for Carvana, targeting a price of $150.
• An analyst from JMP Securities has decided to maintain their Market Outperform rating on Carvana, which currently sits at a price target of $150.

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 Carvana with Benzinga Pro for real-time alerts.