Carvana Options Trading: A Deep Dive into Market Sentiment

Author: Benzinga Insights | May 17, 2024 11:01am

Financial giants have made a conspicuous bearish move on Carvana. Our analysis of options history for Carvana (NYSE:CVNA) revealed 11 unusual trades.

Delving into the details, we found 36% of traders were bullish, while 45% showed bearish tendencies. Out of all the trades we spotted, 2 were puts, with a value of $95,200, and 9 were calls, valued at $433,663.

Predicted Price Range

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $45.0 to $122.0 for Carvana during the past quarter.

Analyzing Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Carvana's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Carvana's whale activity within a strike price range from $45.0 to $122.0 in the last 30 days.

Carvana Call and Put Volume: 30-Day Overview

Noteworthy Options Activity:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
CVNA	CALL	SWEEP	NEUTRAL	08/16/24	$75.35	$72.35	$73.96	$45.00	$96.1K	97	13
CVNA	CALL	SWEEP	BEARISH	08/16/24	$70.6	$68.15	$68.84	$50.00	$89.8K	311	0
CVNA	PUT	SWEEP	BULLISH	05/24/24	$7.4	$6.6	$6.8	$122.00	$68.0K	171	105
CVNA	CALL	TRADE	BULLISH	05/17/24	$48.9	$47.3	$48.9	$70.00	$44.0K	4.9K	11
CVNA	CALL	TRADE	BEARISH	05/31/24	$7.8	$7.0	$7.0	$115.00	$42.0K	40	110

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.

After a thorough review of the options trading surrounding Carvana, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Present Market Standing of Carvana

• Currently trading with a volume of 629,061, the CVNA's price is down by -0.89%, now at $116.89.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 61 days.

Professional Analyst Ratings for Carvana

In the last month, 5 experts released ratings on this stock with an average target price of $103.0.

• Showing optimism, an analyst from JP Morgan upgrades its rating to Overweight with a revised price target of $130.
• Consistent in their evaluation, an analyst from JP Morgan keeps a Neutral rating on Carvana with a target price of $70.
• An analyst from TD Cowen persists with their Hold rating on Carvana, maintaining a target price of $70.
• In a cautious move, an analyst from JMP Securities downgraded its rating to Market Outperform, setting a price target of $135.
• Consistent in their evaluation, an analyst from Baird keeps a Neutral rating on Carvana with a target price of $110.

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.

Posted In: CVNA