The December 16 Bear Call Spread on Carvana (CVNA) closed with a full-premium win as the stock failed to deliver any meaningful upside continuation after its mid-week attempt. Despite holding near highs, momentum continued to fade into Friday, and price remained well below the short strike into expiration.
This was a textbook example of post-gap exhaustion: RSI stayed elevated, but MACD momentum rolled over, signaling slowing upside pressure rather than fresh impulse. Without renewed acceleration or volume expansion, time decay did the heavy lifting.
Both call options expired out of the money, resulting in a clean, probability-driven outcome.
Trade Recap
Structure: Bear Call Spread
Expiration: December 19, 2025
Short Call: 505C (10-delta)
Long Call: 515C
Contracts: 10
Net P/L: +$243
👉 View on OptionStrat
👉 View in Trade Log
Final Thoughts
This trade reinforces the core framework: short-term extension + fading momentum + defined risk + short time to expiration. No directional bet was required — only the absence of further acceleration. Theta and probabilities did the rest.
Full premium captured. Clean execution. Edge intact.
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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.
That was a great trade.