Carvana Options Trading: A Deep Dive into Market Sentiment

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 21 uncommon options trades for Carvana.

This isn't normal.

The overall sentiment of these big-money traders is split between 38% bullish and 47%, bearish.

Out of all of the special options we uncovered, 12 are puts, for a total amount of $1,214,325, and 9 are calls, for a total amount of $436,520.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $150.0 and $250.0 for Carvana, spanning the last three months.

Volume & Open Interest Development

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 $150.0 to $250.0, over the past month.

Carvana Call and Put Volume: 30-Day Overview

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.

Carvana's Current Market Status

• With a volume of 1,481,871, the price of CVNA is up 7.75% at $203.49.
• RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
• Next earnings are expected to be released in 44 days.

Professional Analyst Ratings for Carvana

In the last month, 5 experts released ratings on this stock with an average target price of $307.0.

Turn $1000 into $1270 in just 20 days?

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 Wells Fargo has decided to maintain their Overweight rating on Carvana, which currently sits at a price target of $275. * Maintaining their stance, an analyst from Needham continues to hold a Buy rating for Carvana, targeting a price of $330. * In a positive move, an analyst from RBC Capital has upgraded their rating to Outperform and adjusted the price target to $280. * In a cautious move, an analyst from Needham downgraded its rating to Buy, setting a price target of $330. * In a cautious move, an analyst from JMP Securities downgraded its rating to Market Outperform, setting a price target of $320.

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.