Financial giants have made a conspicuous bearish move on CarMax. Our analysis of options history for CarMax KMX revealed 10 unusual trades.
Delving into the details, we found 40% of traders were bullish, while 60% showed bearish tendencies. Out of all the trades we spotted, 7 were puts, with a value of $339,240, and 3 were calls, valued at $121,290.
Expected Price Movements
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $65.0 to $75.0 for CarMax during the past quarter.
Volume & Open Interest Development
In today's trading context, the average open interest for options of CarMax stands at 183.0, with a total volume reaching 3,144.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in CarMax, situated within the strike price corridor from $65.0 to $75.0, throughout the last 30 days.
CarMax Option Volume And Open Interest Over Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| KMX | PUT | SWEEP | BULLISH | 01/16/26 | $14.8 | $14.5 | $14.5 | $75.00 | $95.7K | 14 | 0 |
| KMX | PUT | SWEEP | BEARISH | 07/19/24 | $3.1 | $3.0 | $3.1 | $65.00 | $85.2K | 401 | 1.0K |
| KMX | CALL | SWEEP | BULLISH | 01/17/25 | $10.9 | $10.7 | $10.8 | $70.00 | $62.6K | 142 | 93 |
| KMX | PUT | TRADE | BULLISH | 01/17/25 | $9.9 | $9.6 | $9.7 | $72.50 | $45.5K | 316 | 0 |
| KMX | PUT | SWEEP | BEARISH | 07/19/24 | $2.95 | $2.9 | $2.95 | $65.00 | $34.1K | 401 | 124 |
About CarMax
CarMax sells, finances, and services used and new cars through a chain of over 240 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (78% in fiscal 2023 due to the chip shortage) and wholesale about 13% (20% in fiscal 2023), with the remaining portion composed of extended service plans and repair. In fiscal 2023, the company retailed and wholesaled 807,823, and 585,071 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it has only about 4% US market share of vehicles 0-10 years old in 2022. It seeks over 5% share by the end of calendar 2025. CarMax is based in Richmond, Virginia.
After a thorough review of the options trading surrounding CarMax, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of CarMax
- Currently trading with a volume of 3,587,678, the KMX's price is down by -2.73%, now at $69.46.
- RSI readings suggest the stock is currently may be oversold.
- Anticipated earnings release is in 67 days.
What The Experts Say On CarMax
In the last month, 5 experts released ratings on this stock with an average target price of $93.4.
- In a positive move, an analyst from Needham has upgraded their rating to Buy and adjusted the price target to $99.
- An analyst from Oppenheimer has revised its rating downward to Outperform, adjusting the price target to $105.
- In a cautious move, an analyst from Mizuho downgraded its rating to Neutral, setting a price target of $80.
- Maintaining their stance, an analyst from Wedbush continues to hold a Outperform rating for CarMax, targeting a price of $100.
- An analyst from RBC Capital persists with their Outperform rating on CarMax, maintaining a target price of $83.
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 CarMax with Benzinga Pro for real-time alerts.
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Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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