27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Someone with a lot of money to spend has taken a bearish stance on Carvana (NYSE:CVNA).
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, 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 this whale just did?
Today, Benzinga's options scanner spotted 40 uncommon options trades for Carvana.
This isn't normal.
The overall sentiment of these big-money traders is split between 37% bullish and 62%, bearish.
Out of all of the special options we uncovered, 33 are puts, for a total amount of $3,400,356, and 7 are calls, for a total amount of $414,230.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $60.0 to $310.0 for Carvana over the last 3 months.
Volume & Open Interest Development
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 $60.0 to $310.0 in the last 30 days.
Carvana Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| CVNA | PUT | TRADE | NEUTRAL | 01/20/23 | $60.00 | $922.5K | 193 | 967 |
| CVNA | PUT | TRADE | NEUTRAL | 01/20/23 | $60.00 | $874.2K | 193 | 1.9K |
| CVNA | CALL | SWEEP | BULLISH | 03/25/22 | $110.00 | $165.0K | 88 | 217 |
| CVNA | PUT | TRADE | BEARISH | 09/16/22 | $100.00 | $106.0K | 48 | 93 |
| CVNA | PUT | TRADE | NEUTRAL | 03/18/22 | $310.00 | $98.3K | 19 | 6 |
Where Is Carvana Standing Right Now?
- With a volume of 3,577,162, the price of CVNA is up 14.21% at $120.47.
- RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
- Next earnings are expected to be released in 51 days.
What The Experts Say On Carvana:
- RBC Capital has decided to maintain their Outperform rating on Carvana, which currently sits at a price target of $155.
- Stephens & Co. has decided to maintain their Equal-Weight rating on Carvana, which currently sits at a price target of $167.
- Needham has decided to maintain their Buy rating on Carvana, which currently sits at a price target of $222.
- Deutsche Bank has decided to maintain their Hold rating on Carvana, which currently sits at a price target of $130.
- Morgan Stanley has decided to maintain their Overweight rating on Carvana, which currently sits at a price target of $360.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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