Carvana Co. (NYSE:CVNA) shares traded higher Thursday amid volatility in high short interest stocks.
On CNBC’s “Options Action,” Mike Khouw of Optimize Advisors said Carvana was the eighth-busiest single stock option on Thursday, with calls outpacing puts by more than 2 to 1.
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There was a buyer of 4,500 of the January 8/10-calls spreads at an average price of 46 cents per contract, Khouw mentioned.
The trader expects Carvana’s stock to surge by as much as 25% by next Friday.
CVNA Price Action: Shares of Carvana jumped 46% to close at $8.03 on Thursday, and lost 1% in the after-hours trading session.
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