Far OTM Puts Bought in CVNA Right Before Stock Gets Cut in Half

Far OTM Puts Bought in CVNA Right Before Stock Gets Cut in Half


carvana unusual options activity, carvana, cvna uoa, carvana uoa

Today, we’re talking about Carvana unusual options activity. Remember Carvana

“Caravana to the moon” — Source: Wallstreetbets
Yes, that Carvana. Source: Ycharts

She’s not doing so well.

Last night Carvana reported its second top and bottom line earnings miss in a row. And this one was ugly.

Carvana reported a -35.37% miss on EPS (-$2.67 vs -$1.97 expected) and a -8.34% revenue miss ($3.39B vs $3.69B expected). As a result, shares of Carvana fell -37.28%, to $9.00 in intraday trading.

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As we write this, shares of CVNA continue to plummet. Source: Google

If you read the title, you already know where we’re going with this.

Carvana Unusual Options Activity: $9 Strike Puts

Source: Market Rebellion Unusual Options Activity

You can’t make this stuff up. The week before last, someone dropped over a quarter-million dollars on far OTM $9 strike puts. These puts were set to expire worthless unless Carvana experienced a car-pocalypse. Of course, you’ve seen the graph above. You already know what happened. These puts, which expire November 18th, so the extrinsic value combined with Carvana’s high-speed plummet is leading the value of these bearish puts to rapidly accelerate in value. 

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