CVNA and OKLO Puts, USO Calls

Original Reddit post

Author outlines a weekly options strategy with CVNA and OKLO puts and USO calls, citing valuation, accounting, oil-transport cost, and Hormuz supply risks.

CVNA — SHORT The author argues CVNA trades at 50x PE with a high likelihood its numbers are inflated by creative accounting, making it vulnerable to correction. He also notes CVNA is exposed to rising oil prices since nearly every vehicle it sells is transported hundreds of miles by truck. He expresses this via weekly puts.

CVNA trades at 50x pe. There is a high likelihood their numbers are further inflated by “creative accounting,” making them very vulnerable to correction.

OKLO — SHORT The author argues OKLO has a cool concept but nobody has been able to profitably do what they are attempting, and at a $9 billion valuation the stock is still too rich. He expresses this via weekly puts.

OKLO has a very cool concept, but nobody has been able to make a profit doing what they are trying to do. At a 9 billion dollar valuation they are still too rich.

USO — LONG The author bought 10x USO weekly call contracts at oil $79-$84 and one hour later oil popped to $90. He argues that until the Straits of Hormuz open, oil prices are likely to continue on a parabolic path, supporting the calls.

Until the Straits of Hormuz open prices are likely continue on a parabolic path.