CVNA Call Spread Traders Lock in 88% Gains as Stock Jumps 7 Points—What’s Driving the Momentum?
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Large Call Spread Trade in CVNA Nets 88% in a Day
Carvana Co. (CVNA) drew market attention today with a high-volume call spread that quickly generated notable returns. The trade—spanning the June 20, 2025 expiration at strikes 317.5 and 325—traded 1,920 contracts at a VWAP price of $0.92. As of the late afternoon, that same spread’s value reached $1.73, handing buyers an average gain of $0.81 per spread, or 88%. The swift move can be tied to a $7.07 rally in CVNA stock from $311.86 to $318.93 post-trade.
Key Trade Details: Profitable Call Spread Explained
| Expiration | June 20, 2025 |
|---|---|
| Strike Prices | 317.5 - 325 (Call Spread) |
| Contracts | 1,920 |
| VWAP Trade Price | $0.92 |
| Spread Price as of 3:40PM | $1.73 |
| Reference Stock Price (Time of Trade) | $311.86 |
| Stock Price Now | $318.93 |
The spread buyer risked a total outlay of about $88,000 (1,920 contracts x $0.92 x 100) with a maximum potential profit of $632,000—if CVNA closes above $325 at expiration. This payout profile suggests a targeted but leveraged bullish bet, with upside limited to the spread’s width, less the entry price. For more granular trade details and real-time analysis, check the Multi Leg Trade Analyzer.
Technical Indicators: Stock Price Shows Persistent Strength
Recent technical action paints a bullish picture. CVNA surged 3.58% on the day and currently trades just $9.30 (or -9.3%) below its 52-week high of $345.64. The stock sits 200% above its 52-week low, reflecting substantial momentum over the past year. Today’s price also exceeds its expected resistance level (currently breaking above $317.46), a sign that buyers remain in control—even as it slips slightly below short-term averages (down 0.4% from the 20-day moving average, but still up 15.5% vs the 50-day and 52% vs the 250-day).
| Time Period | CVNA Return | SPY Return |
|---|---|---|
| Today | +3.6% | -0.4% |
| 2 Weeks | -7.7% | -0.4% |
| 1 Month | +6.4% | -0.1% |
| 3 Months | +91.5% | +6.1% |
| 6 Months | +36.9% | +1.9% |
| 1 Year | +187.9% | +9.5% |
| YTD | +56.8% | +1.6% |
| 3 Years | +1214.1% | +67.4% |
| 5 Years | +159.3% | +101.5% |
Relative to the S&P 500 (SPY), CVNA has crushed the broader market: +187.9% over the last year versus SPY’s +9.5%. Even on a shorter three-month window, CVNA is up 91.5% while SPY managed just 6.1%. However, recent two-week returns show a -7.7% pullback—indicating some short-term consolidation amid otherwise bullish trends.
Technical Indicators: Top Pullback and Uptrend Momentum
The “Top Pullback” moving average pattern is in effect, highlighting that CVNA remains well above its longer-term averages, even as it faces mild pressure from its recent highs. Momentum metrics are largely bullish—52% above the 250-day moving average, and with 16% spread between the 20-day and 50-day averages.
Option Skew Remains Slightly Bullish
The options market also leans positive. The proprietary skew indicator ranks at 58%—tilted toward a bullish sentiment, though not at extremes. This level signals traders are paying relatively more for upside calls, which can mean anticipation of further gains or increased demand for bullish hedges in the near future.
Takeaway: Leverage, Limited Risk, and Bullish Positioning
This CVNA call spread showcases how traders can structure defined-risk, leveraged bets—aiming for big percentage returns if their price targets hit, without exposing themselves to unlimited downside. With stock momentum strong, options sentiment leaning bullish, and historical outperformance in play, CVNA’s risk-reward setup is drawing calculated risk-takers.
Want to research more multi-leg option trades? Visit the multi-leg trade screener to discover other large spreads and strategic setups in today’s options markets.
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