Unusually High Call Option Volume on Carvana

Tom Gentile

Posted in
Daily Report

By: Tom Gentile
August 8th, 2022

2 mins read

When one is looking over the Morning Report lists they will see a number of stocks whose options make any of the category lists.

One of those lists is the Unusually High Call Option Volume list.

When one sees stocks on this list you can either discuss with your broker its suitability for one’s portfolio or dig further in to the stock regardless of broker input – that is a decision for each person to make.

Here is that list:

Figure 1: Unusually High Call Option Volume List
Figure 1: Unusually High Call Option Volume List

Carvana Co. (NASDAQ: CVNA) heads the list.

This is a Consumer Cyclical stock. Per Yahoo Finance’s site it is specified an internet retailer.

What the company sells, (actually buys and sells) is used cars. And they do this in the United States.

Look up a Company’s Upcoming Earnings

A reason the stock and the options listed show up on the list is it may be coming up on or has announced their recent quarterly earnings (and revenue) numbers.

We are not advocated of buying to open options to hold over an earnings reports typically, so if the options are on the list prior to the company announcing we would likely stand down and not pursue trading the option.

If, in the case of CVNA, it is past the earnings release one could discuss with their broker the thought of pursuing trading it.

Technical Analysis is also Worth Looking in to

You can see CVNA has been in a basing pattern for awhile prior to this last earnings report. It popped higher off the report of their recent  earnings, which may be a sing they are turning things around.

And by that, we are talking about there is a reason or reasons it is trading at this depreciated price level, (depreciated off the $150-price level). Basically, this is looking like a potential turnaround candidate from a stock ownership perspective.

Figure 2: 120-day Candle Chart on CVNA
Figure 2: 120-day Candle Chart on CVNA

The option from the list is a short-term option in that it is an August expiry.

One other consideration to discuss with your financial professional is a LEAPs option. Of course, thar is if you and your financial team believe in CVNA longer-term.

App: Toms Option Tools

Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.

Other times I will have other charts may work to amplify my educational points. 

Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.

Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.