Carvana's Options Frenzy: What You Need to Know

Deep-pocketed investors have adopted a bearish approach towards Carvana CVNA, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in CVNA usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 37 extraordinary options activities for Carvana. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 27% leaning bullish and 59% bearish. Among these notable options, 28 are puts, totaling $2,966,652, and 9 are calls, amounting to $324,397.

Expected Price Movements

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 $320.0 for Carvana over the last 3 months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Carvana options trades today is 1592.22 with a total volume of 8,545.00.

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 $100.0 to $320.0 over the last 30 days.

Carvana Call and Put Volume: 30-Day Overview

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.

Present Market Standing of Carvana

• Currently trading with a volume of 2,359,685, the CVNA's price is down by -15.59%, now at $191.04.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 27 days.

What The Experts Say On Carvana

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $295.0.

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20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from Needham downgraded its action to Buy with a price target of $340. * An analyst from JP Morgan has decided to maintain their Overweight rating on Carvana, which currently sits at a price target of $365. * Maintaining their stance, an analyst from JP Morgan continues to hold a Overweight rating for Carvana, targeting a price of $325. * An analyst from Piper Sandler upgraded its action to Overweight with a price target of $225. * Maintaining their stance, an analyst from B of A Securities continues to hold a Buy rating for Carvana, targeting a price of $220.

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.