Carvana's 10-Day Put/Call Ratio Hits 2.08 as Shares Drop 7.6%
CVNA•CVNA•CVNA•CVNA•Carvana shares fell 7.6% after CarMax's earnings highlighted used-car market softness and subprime auto risks. A 10-day put/call ratio of 2.08 in the 94th percentile precedes 24.4% average one-month gains 70% of the time, with 11.6% of float sold short requiring over five days to cover.
Carvana shares slid 7.6% following CarMax's earnings report that underscored softness in the used-car market and elevated subprime auto lending risks. The pullback extended the stock’s 23% year-to-date deficit and its 10.3% year-over-year decline.
The 10-day put/call volume ratio reached 2.08, placing it above 94% of readings over the past year and marking the tenth occurrence in three years. Historical data shows a subsequent one-month average return of 24.4% in 70% of instances, while 11.6% of float is sold short and would take over five trading days to cover at current volumes, indicating potential squeeze pressure.
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