(Bloomberg) – Shares of Carvana Co. has doubled this year and there could be more tough moves for the indebted online used car retailer amid bets that the rally won’t last.
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About 195,000 call options contracts on Carvana changed hands at 1:16 p.m. Monday in New York, well above the 20-day average volume, according to data compiled by Bloomberg. The stock is up 26% on the day, and if the positive momentum continues through the close, bullish bet volume on the stock could surpass the all-time high of 371,000 contracts reached earlier this month. .
Retail traders have been eager to enjoy Carvana’s wave of recovery that has brought back memories of the 2021 meme-stock craze. At close to $10 a share, however, Carvana is a long way off. It hit $370 in August 2021. It fell 98% last year as rising borrowing costs, rising inflation concerns and falling used-car prices weighed on the company’s growth outlook. company.
And its 2023 rally has attracted many bets that the stock will lose momentum.
Of the companies in the Russell 1000 Index, Carvana holds the highest short-term interest, at nearly 60% of the free floating, according to IHS Markit data. It’s also been the biggest gainer in the equity measure this year.
(Update transaction)
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