10% Owner Ernest C. Garcia II Sells $272M in Carvana Covered Call Options
CVNA sits 56% above its 52-week low of $245.
Summary
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.
Key Events · Ownership and Investor Activity · CVNA
-
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).
Analysis · CVNA · Trade & Services
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.
At the time of this filing, CVNA was trading at $382.49 on NYSE in the Trade & Services sector, with a market capitalization of approximately $83.9B. The 52-week trading range was $245.00 to $486.89. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.