The used car retailer reported smaller-than-expected second-quarter losses
Carvana Co (NYSE:CVNA) advanced its earnings report, earlier announcing smaller-than-expected second-quarter losses of 55 cents per share and a revenue beat of $2.97 billion -- its best quarter on record. The company also made a deal with bondholders with to cut its outstanding debt by more than $1.2 billion.
Last seen up 29.4% to trade at $51.49, Carvana stock earlier surged to a 2023 high of $56.92. The security overcame a ceiling at the $30 region at the beginning of the month, with support from its 20-day moving average. Year-to-date, CVNA sports a whopping 1,000.6% lead, now the best-performing stock on the New York Stock Exchange (NYSE).
Options volume is already running at five times the intraday average, with 87,000 calls and 81,000 puts exchanged so far. The most active contract is the July 59 call, where positions are being bought to open.
Short sellers are hitting the exits in droves, with short interest down 13.6% over the two most recent reporting periods. There is plenty of pessimism left to unwind, though, as the 41.51 million shares sold short still account for 43.8% of Carvana stock's available float.
What's more, the equity's Schaeffer's Volatility Scorecard (SVS) sits at an 99 out of 100, meaning the it has exceeded option traders' volatility expectations during the past year.