Retail Traders Target Heavily Shorted Carvana Stock

Short interest makes up 56.5% of CVNA's available float

Digital Content Manager
Jan 13, 2023 at 9:49 AM
facebook twitter linkedin


Online used car retailer Carvana Co (NYSE:CVNA) has been making a lot of noise this week. The equity has been in rally mode since Wednesday, when a retail trading frenzy helped CVNA add over 24%, and yesterday extended those gains with a 46% surge, as shares trended on social media trading website Stocktwits. Additionally, the Wall Street Journal today reported the company has been quietly laying off employees as it faces slowing sales. 

Last seen down 8.6% at $7.37, Carvana stock has struggled with overhead pressure at the $10 region since November, and carries a hefty 95.1% year-over-year deficit. However, in the previous session retail traders helped CVNA close above the 40-day moving average for the first time since September. 

The brokerage bunch is overwhelmingly bearish, with 21 of the 23 analysts in coverage carrying a tepid "hold" or worse rating. The security is heavily shorted, too. Short interest added 25.6% in the last two reporting periods, and the 54.10 million shares sold short now make up 56.5% of the stock's available float.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners