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 89 uncommon options trades for Carvana.

This isn't normal.

The overall sentiment of these big-money traders is split between 39% bullish and 42%, bearish.

Out of all of the special options we uncovered, 54 are puts, for a total amount of $3,834,395, and 35 are calls, for a total amount of $2,906,489.

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 $75.0 and $370.0 for Carvana, spanning the last three months.

Insights into Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Carvana options trades today is 1047.04 with a total volume of 38,583.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Carvana's big money trades within a strike price range of $75.0 to $370.0 over the last 30 days.

Carvana 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

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.

Current Position of Carvana

• With a trading volume of 3,864,528, the price of CVNA is down by -9.78%, reaching $168.25.
• Current RSI values indicate that the stock is may be oversold.
• Next earnings report is scheduled for 43 days from now.

What The Experts Say On Carvana

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $309.0.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * Consistent in their evaluation, an analyst from DA Davidson keeps a Neutral rating on Carvana with a target price of $260. * An analyst from JP Morgan has decided to maintain their Overweight rating on Carvana, which currently sits at a price target of $365. * An analyst from RBC Capital has decided to maintain their Outperform rating on Carvana, which currently sits at a price target of $320. * Reflecting concerns, an analyst from Stephens & Co. lowers its rating to Overweight with a new price target of $300. * An analyst from Stephens & Co. has revised its rating downward to Overweight, adjusting the price target to $300.

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.