Carvana Options Traders See Stock Surging Even More, After Shares Rise 739% Year-To-Date

Carvana Co. CVNA shares traded higher on Wednesday after JMP Securities raised its price target on the stock.

Carvana shares are up more than 250% in just the last three months. The surge in shares was sparked by the company's better-than-expected financial results at the beginning of May. 

On CNBC’s "Options Action," Brian Stutland of Equity Armor Investments said Carvana traded at 2.2x its average daily call volume on Wednesday.

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There was a buyer of 3,000 of the July 14 weekly 46-calls at an average price of $1.70 per contract, Stutland mentioned.

The trader expects Carvana’s stock to trade above the $47.70 level by the end of the week.

JMP Securities analyst Nicholas Jones maintained coverage on Carvana with a rating of Outperform and raised the price target from $25 to $50.

Price Action: Carvana shares jumped 9.3% to close at $38.89 on Wednesday, and added 2.7% in the after-hours trading session.

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