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There was a buyer who rolled 6,830 January 2024 12.5 puts down to January 2024 5 puts at an average price of $2.25 per contract, Khouw stated. The trader may be using this to hedge against a debt, he stated. When a company liquidates, the equity goes to zero, “sometimes there is a recovery rate on the bonds, and it is an arbitrage trade. I think that is what is going on here,” he added.
CVNA Price Action: Shares of Carvana declined by 15.64% to settle at $7.39, on Monday.
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