Carvana Bulls Are On The Prowl Again

Shares of Carvana Co. CVNA have gained a whopping 208% year to date. On CNBC's "Options Action," Michael Khouw of Optimize Advisors said the stock traded three times its average daily volume on Thursday.

Check out other stocks making moves in the premarket.

There were buyers of 4,257 of the February 25 calls, at an average price of $1.95 per contract, Khouw mentioned. Traders expect Carvana’s shares to rise by at least 89% by February expiration, he added. “People buy options when they are betting on a short squeeze,” he said, adding the traders are betting on the potential of the short squeeze to continue.

CVNA Price Action: Shares of Carvana rose by 5.09% to close at $14.25 on Thursday.

Photo via Shutterstock.

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Posted In: Long IdeasOptionsSmall CapTop StoriesMarketsMediaTrading IdeasMichael KhouwOptimize Advisors
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