- Unusually high trading volumes for Carvana (CVNA) might be due to undisclosed information or insider trading.
- Influential traders apparently bearish on Carvana, as confirmed by 10-to-1 put-to-call option ratio.
- High-value trades amounting to $1,733,706 raise eyebrows.
- Evolving investment patterns of key players like institutional investors and hedge funds concerning Carvana also receiving scrutiny.
The market shenanigans revolving around Carvana (NYSE:CVNA) have been the cause of much buzz on Wall Street, with the investment community keenly observing the comings and goings. The surge in the trade volume, coupled with a widespread bearish outlook and erratic investing trends, suggests that there may be more than meets the eye.
Prominent data collection firms including Bloomberg, FactSet and S&P Capital IQ point out a rather drastic tilt towards pessimism in Carvana's trading trajectory. A jaw-dropping ratio of 10-to-1 put options versus call options stands out. Under the standard Black-Scholes pricing model, this stark deviation from the norm signals a possible underperformance of Carvana's shares in the foreseeable future. For context, their bearish hue puts their value on an uptrend as Carvana’s fortunes dwindle.
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