10% Owner Ernest C. Garcia II Sells $272M in Carvana Covered Call Options

summarizeSummary

Carvana's 10% owner, Ernest C. Garcia II, sold covered call options covering 4 million shares for a premium of $272.23 million, monetizing a portion of his holdings.

check_boxKey Events

• Insider Sells Covered Call Options

  Ernest C. Garcia II, a 10% owner, sold covered call options covering 4,000,000 shares of Carvana Class A Common Stock.

• Significant Premium Received

  The transaction generated a cash premium of $272,230,000 for the insider, with options priced at $68.06 per unit.

• Options Cap Upside Potential

  The options have strike prices of $450.00 and $500.00, expiring in May 2027, which caps the insider's potential gains on the underlying shares if the stock rises above these levels.

• Follows Prior Intent to Sell

  This Form 4 reports the execution of a derivative transaction related to the 4,000,000 shares for which a Form 144 indicating intent to sell was filed earlier today (2026-05-01).

auto_awesomeAnalysis

Ernest C. Garcia II, a 10% owner of Carvana, has sold covered call options covering 4,000,000 shares, receiving a substantial premium of $272.23 million. This transaction, which follows a Form 144 filing indicating intent to sell, represents a significant monetization event for the insider. While generating immediate cash flow, selling covered calls caps the insider's potential upside on these shares if the stock price rises above the strike prices of $450 and $500 by the May 2027 expiration date. This strategy suggests the insider is willing to forgo potential future gains in exchange for current income and risk reduction.