$CVNA bulls score again

Option traders cashed in on upside positions in Carvana today for the second time in less than a week.

On Dec. 14, Investitute’s market scanners identified the purchase of 4,000 May $35 calls for $6.60 as part of a bullish roll with shares at $32.36. This was clearly a new position, as open interest in the strike was a mere 7 contracts before the trade occurred.

Those calls were marked $16.45 tihs afternoon, 2.5 times their purchase price. The stock surged 54.67% in the same time period, a huge move but still well below that of its options on a relative basis.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

It is the second winning trade in the name posted on Investitute since last Friday.

CVNA jumped to $52.60 early this morning before pulling back with the broader market to close at $49.48, down 2.21% on the session. Citi boosted its price target on online car seller to $65 from $55 after quarterly results at the end of February.