Carvana Unusual Options Activity

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 positions 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.

Today, Benzinga's options scanner spotted 9 options trades for Carvana.

This isn't normal.

The overall sentiment of these big-money traders is split between 44% bullish and 55%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $40,000, and 8, calls, for a total amount of $362,670.

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 $80.0 to $130.0 for Carvana over the last 3 months.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Carvana's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Carvana's significant trades, within a strike price range of $80.0 to $130.0, over the past month.

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.

Having examined the options trading patterns of Carvana, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Current Position of Carvana

• Currently trading with a volume of 526,365, the CVNA's price is up by 0.83%, now at $115.98.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 56 days.

Expert Opinions on Carvana

In the last month, 5 experts released ratings on this stock with an average target price of $115.0.

• An analyst from JP Morgan upgraded its action to Overweight with a price target of $130.
• Maintaining their stance, an analyst from Wedbush continues to hold a Neutral rating for Carvana, targeting a price of $120.
• Consistent in their evaluation, an analyst from JMP Securities keeps a Market Outperform rating on Carvana with a target price of $135.
• An analyst from TD Cowen has decided to maintain their Hold rating on Carvana, which currently sits at a price target of $110.
• An analyst from Wedbush has revised its rating downward to Neutral, adjusting the price target to $80.

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.