CVNA Weekly Options Trade Plan 2025-06-16

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CVNA Weekly Analysis Summary (2025-06-16)

CVNA Weekly Options Trading Analysis and Recommendations

1. Comprehensive Summary of Key Points

Technical Analysis

Price Position Relative to Moving Averages: Current price ($292.14) is below the 10-period EMA ($292.50), 50-period EMA ($293.17), and significantly beneath the 200-period EMA ($302.42), indicating bearish pressure across multiple timeframes. RSI: Short-term RSI (5-minute) is at 34.51 (oversold), while daily RSI stands at 32.92 (also oversold), suggesting potential for a bounce but aligning with bearish momentum. Bollinger Bands: Price is near the lower band on both the daily and 5-minute charts, indicating high volatility and potential for mean reversion. MACD: Negative readings on the MACD indicate continued bearish momentum, with a strong divergence on the daily chart.

Market Sentiment

VIX: At 20.82, indicating elevated volatility and higher market risk. Recent News: Mixed sentiment with both positive earnings reports and negative insider selling impacting confidence. Options Analysis: Significant put options interest at $285 and a max pain level also at $285 suggests a bearish outlook, with potential downward pressure toward this level to maximize losses for option holders.