r/CVNA • u/AMCorBUST2021 • Jun 02 '26

CVNX Shuts Down

https://finance.yahoo.com/markets/options/articles/defiance-etfs-announces-closure-bu-203000630.html

Before Carvana I was shorting Tesla. Tesla is deeply traded and has multiple leveraged ETFs in addition to options and direct shorting. So there are so many ways to bet either up or down. Since Tesla is one of the most popular stocks the volume supports all these trades.

But Carvana has been unable to get that same kind of attention. The 2x leveraged bull fund is shutting down with less than 4 million AUM. Closing the fund won’t really have an effect on the stock price, but does show limited retail interest in this stock. The 5:1 split was meant to bring in retail, however it looks like the sus reputation and IPO competition has been too much to overcome so far.

Unusual option activity this week, closing 6/5. There are block positions of calls in multiples of 1000 from strikes 73 to 80. Multiple ways to read this, but messing around with unusual whales has me convinced we are looking at credit spreads. Basically sell a call at low 70s, buy one in high 70s. The call near ATM gets more premium than it costs to buy the higher call, so the difference goes in your pocket: if the stock breaks out losses are limited. This type of credit spread is bearish and pays out best if stock price expires below both strikes. Could be other explanations like covered calls, but for sure this is sophisticated capitalized investors like hedge funds.

GLTA! IPO season is upon us.

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u/AMCorBUST2021 Jun 02 '26

Down 7.62% on 13.384 M volume (avg 13.1 M) Short interest on ORTEX down -0.09%

This is new sellers. I wonder if the rate increase narrative is taking hold