CarMax Inc (NYSE:KMX) is gapping lower this morning, last seen down 6.4% to trade at $48.64, despite the car reseller reporting adjusted first-quarter earnings of $1.31 per share on $8.01 billion in revenue, both of which topped estimates. Although the company reported higher sales, price cuts on its products triggered a drop in Q1 profit. The stock was initially higher premarket, but pivoted lower at the opening bell.
KMX is headed for its worst daily drop since April 14, but remains 25% higher for 2026. The shares were rejected yesterday by the descending 320-day moving average, today breaching the round $50 level.
Bears have been crowding KMX of late. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CarMax stock's 10-day put/call volume ratio of 1.47 ranks in the 95th annual percentile. This is echoed by the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.23, which ranks higher than 88% of readings from the past year.
Today is no exception either, with 2,912 calls and 3,635 puts across the tape so far. This is 12 times the average daily rate, with the June 50 put and call seeing the most attention.
Lastly, the stock sports a lofty Schaeffer's Volatility Scorecard (SVS) of 88 out of 100. This suggests the equity has consistently realized higher-than-expected volatility over the past 12 months.
