Carvana Stock Price Plummets Amid High Put Option Purchases
Carvana's (NYSE:CVNA) stock price has taken a hit, plummeting $5.24 to $64.85 on Tuesday as investors acquire high volumes of put options.
The unusual trading activity saw 89,113 put options purchased by investors, representing an increase of approximately 48% compared to the average volume of 60,304 put options.
Despite this surge in put option purchases, the stock's price has not reflected the pessimistic outlook, with some analysts predicting a future growth trajectory for Carvana. In fact, the company's latest earnings report revealed revenue up 52.4% compared to last year, beating analyst estimates of $6.90 billion.
Other market indicators also suggest continued interest in Carvana, with several large investors purchasing shares of the company over the past quarter. For example, Swiss National Bank increased its stake by 9.9%, and Hsbc Holdings PLC boosted its holdings by 239.6% during the same period.