What the Options Market Tells Us About Carvana

Investors with a lot of money to spend have taken a bearish stance on Carvana CVNA.

And retail traders should know.

We noticed this today when the trades 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 CVNA, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 11 uncommon options trades for Carvana.

This isn't normal.

The overall sentiment of these big-money traders is split between 36% bullish and 54%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $517,362, and 7 are calls, for a total amount of $255,097.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $130.0 to $170.0 for Carvana during the past quarter.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of Carvana stands at 1410.0, with a total volume reaching 3,611.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Carvana, situated within the strike price corridor from $130.0 to $170.0, throughout the last 30 days.

Carvana Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

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.

Where Is Carvana Standing Right Now?

• Currently trading with a volume of 427,471, the CVNA's price is up by 3.54%, now at $146.92.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 45 days.

What Analysts Are Saying About Carvana

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $182.33333333333334.

• An analyst from JMP Securities downgraded its action to Market Outperform with a price target of $200.
• Consistent in their evaluation, an analyst from Evercore ISI Group keeps a In-Line rating on Carvana with a target price of $157.
• In a cautious move, an analyst from Stephens & Co. downgraded its rating to Overweight, setting a price target of $190.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Carvana, Benzinga Pro gives you real-time options trades alerts.