Carvana's Options: A Look at What the Big Money is Thinking

Investors with significant funds have taken a bearish position in Carvana CVNA, a development that retail traders should be aware of.

This was brought to our attention today through our monitoring of publicly accessible options data at Benzinga. The exact nature of these investors remains a mystery, but such a major move in CVNA usually indicates foreknowledge of upcoming events.

Today, Benzinga's options scanner identified 8 options transactions for Carvana. This is an unusual occurrence. The sentiment among these large-scale traders is mixed, with 25% being bullish and 62% bearish. Of all the options we discovered, 7 are puts, valued at $533,280, and there was a single call, worth $136,740.

Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $125.0 to $230.0 for Carvana over the last 3 months.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of Carvana stands at 4513.5, with a total volume reaching 1,825.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Carvana, situated within the strike price corridor from $125.0 to $230.0, throughout the last 30 days.

Carvana Option Activity Analysis: Last 30 Days

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.

Following our analysis of the options activities associated with Carvana, we pivot to a closer look at the company's own performance.

Current Position of Carvana

• Currently trading with a volume of 1,477,967, the CVNA's price is down by -1.92%, now at $210.97.
• RSI readings suggest the stock is currently may be approaching oversold.
• Anticipated earnings release is in 56 days.

Professional Analyst Ratings for 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 $302.0.

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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. * In a cautious move, an analyst from Stephens & Co. downgraded its rating to Overweight, setting a price target of $300. * Consistent in their evaluation, an analyst from Baird keeps a Neutral rating on Carvana with a target price of $250. * An analyst from Needham has decided to maintain their Buy rating on Carvana, which currently sits at a price target of $340. * In a cautious move, an analyst from Stephens & Co. downgraded its rating to Overweight, setting a price target of $300. * Maintaining their stance, an analyst from Citigroup continues to hold a Buy rating for Carvana, targeting a price of $320.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Carvana options trades with real-time alerts from Benzinga Pro.