Carvana (CVNA) delivered one of its strongest upside gaps in recent months, followed by a brief pullback and renewed upside attempt mid-week. While price managed to lift again on Wednesday, the broader structure remains stretched: RSI continues to sit in overbought territory, while MACD momentum has begun to roll over, suggesting waning upside acceleration rather than fresh impulse.
The question for the remainder of the week is straightforward:
Does CVNA have enough fuel for another vertical extension — or does the move digest into consolidation?
Note: this position was opened automatically via a resting limit order during the second half of Wednesday’s session while I was offline.
Setup Selection
This trade targets a familiar post-gap dynamic:
RSI remains elevated, signaling persistent overbought conditions
MACD momentum is fading despite price holding near highs
Prior pullback failed to reset momentum meaningfully
Time to expiration is very short, increasing the impact of theta
Rather than betting on a reversal, this setup assumes price stability or limited follow-through into Friday’s close.
Why Bear Call Spread?
Defined risk, short-dated structure
10-delta short strike provides a wide statistical buffer
Profits from consolidation, chop, or modest pullback
No need for bearish continuation — only restraint
This is a probability trade, not a directional prediction.
Trade Structure
Expiration: December 19, 2025
Short Call: 505
Long Call: 515
Contracts: 10
Expected Profit: $250 (before commissions)
👉 View on OptionStrat
👉 View in Trade Log
Entry & Management
The spread was entered Wednesday afternoon via limit order. With only two trading days remaining, theta decay is already working aggressively in favor of the position.
Plan: hold through expiration unless CVNA shows renewed upside acceleration with expanding volume toward the short strike. Absent that, the expectation is a clean out-of-the-money expiration.
This trade follows the same core framework:
short-term extension + fading momentum + defined risk + statistical edge.
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Disclaimer
All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.