Carvana Options Traders Are Betting The Stock Will Rally By This Much In The Coming Week

Carvana Co. CVNA shares traded higher Thursday amid volatility in high short interest stocks.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Carvana was the eighth-busiest single stock option on Thursday, with calls outpacing puts by more than 2 to 1.

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There was a buyer of 4,500 of the January 8/10-calls spreads at an average price of 46 cents per contract, Khouw mentioned.

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The trader expects Carvana’s stock to surge by as much as 25% by next Friday.

CVNA Price Action: Shares of Carvana jumped 46% to close at $8.03 on Thursday, and lost 1% in the after-hours trading session.

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