Understanding CarMax Options Trading Insights and Performance
Understanding CarMax Options Trading Insights and Performance
Recent trends in options trading reveal interesting bullish movements at CarMax. The analysis of the company’s options activity demonstrated that traders are actively engaging, with a striking 11 notable trades detected within a specified timeframe.
When diving deep into the data, it became clear that around 45% of trades leaned bullish, while 36% were bearish in nature. A breakdown of the activity showed that out of the trades observed, 8 were puts valued at $537,122, contrasted with 3 calls that amounted to $127,050. This insight indicates a mix of confidence and caution among traders.
Predicted Price Range for CarMax
The gathered options data suggest that significant investors are focusing on a projected price range between $75.00 to $85.00 for CarMax over the recent quarter. This forecast is shaped by a careful examination of the Volume and Open Interest associated with these trading contracts.
Examining Volume and Open Interest Trends
The examination of volume and open interest is a crucial aspect of analyzing stock activity. This analysis allows investors to gauge liquidity and market interest regarding CarMax's options for specific strike prices.
In the last month, trends in the volume and open interest of both calls and puts have shown the dynamics of whale activity, particularly within the targeted price range of $75.00 to $85.00.
Analysis of Recent Options Activity
In the past 30 days, significant options trades have unfolded for CarMax. Here are key details:
Highlighted Options Trades:
Here’s an overview of the significant options trades observed:
1. CarMax KMX - PUT - Sweep - Neutral Sentiment, Expiration: 10/18/24, Trade Price: $7.95, Total Trade Price: $190.0K.
2. CarMax KMX - PUT - Sweep - Neutral Sentiment, Expiration: 10/18/24, Trade Price: $4.75, Total Trade Price: $113.5K.
3. CarMax KMX - CALL - Sweep - Bullish Sentiment, Expiration: 10/18/24, Trade Price: $2.55, Total Trade Price: $53.5K.
4. CarMax KMX - PUT - Sweep - Bullish Sentiment, Expiration: 10/18/24, Trade Price: $4.60, Total Trade Price: $46.0K.
5. CarMax KMX - PUT - Sweep - Bearish Sentiment, Expiration: 01/17/25, Trade Price: $10.40, Total Trade Price: $40.5K.
Introducing CarMax
CarMax is known for selling, financing, and servicing both used and new vehicles through approximately 250 retail locations. Originally a part of Circuit City, it became an independent entity in 2002.
Typically, used vehicle sales contribute about 83% to CarMax’s revenue, while wholesale sales account for about 13%. In fiscal 2024, the company reported retailing 765,572 used vehicles while wholesaling 546,331.
As the largest used vehicle retailer in the country, it still holds a relatively modest market share of around 3.7% for vehicles aged 0-10 years, showing ambitions to reach over 5% in the years ahead.
Current Market Performance
- Currently, CarMax trades at a volume of 2,442,796, with stock price reflecting a slight increase of 0.07%, reaching $76.5.
- Technical indicators, such as RSI, suggest that the stock may be nearing an oversold condition.
- The next earnings report is imminent, scheduled in just 2 days.
Expert Insights on CarMax
Several market analysts have recently explored CarMax’s financial outlook, presenting a mixed consensus on its stock's target price. Currently, the target average price is projected at around $78.33. Individual analysts have varying opinions:
- An analyst from Wedbush has reduced its rating to Outperform, shifting the target price to $95.
- A JP Morgan analyst maintains a cautious view, holding an Underweight rating with a target of $65.
- Truist Securities continues with a Hold recommendation, setting a target price of $75.
Engaging in options trading inherently carries risks but also presents opportunities for substantial gains. Successful traders stay informed and adjust strategies based on market developments. For real-time updates on options trades related to CarMax, one can utilize various trading platforms.
Frequently Asked Questions
What recent options trend has been observed at CarMax?
Recent analysis showed a significant bullish movement among traders, with a mixture of puts and calls indicating varying sentiments.
What is the predicted price range for CarMax?
The predicted price range for CarMax is estimated to be between $75.00 and $85.00.
How has CarMax's market share changed?
CarMax currently holds about 3.7% of the US market for vehicles 0-10 years old but aims to exceed 5% in the coming years.
What are the expert ratings on CarMax's stock?
Experts have issued mixed ratings, with target prices ranging from $65 to $95, showing varied confidence in CarMax's performance.
Why is monitoring volume and open interest important?
Analyzing volume and open interest offers insights into liquidity and market interest, essential for making informed trading decisions.
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Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.
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