Carvana Founder Garcia Notices 10M-Share Covered Call, ~$683M Notional
CVNA sits 25% above its 52-week low of $54.464 on elevated volume (2.0× avg).
Summary
Carvana 10% holder Ernest Garcia II has noticed a 10 million-share covered call position worth about $683 million, pledging the underlying shares as collateral — a large founder-linked overhang rather than a clean sale.
Key Events · Ownership and Investor Activity · CVNA
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Garcia Notices 10M-Share Covered Call
Ernest C. Garcia II, a 10% stockholder, intends to write 10,000,000 covered call options over Class A Common Stock through his wholly owned ECG II SPE II, LLC, with Citigroup as broker.
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Roughly $683M Notional, ~1.4% of Shares
The filing states an aggregate market value of $682,900,000 against 722,713,745 shares outstanding — about 1.4% of the share count, far larger than the $1-4M officer 144s filed since August.
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Underlying Shares Pledged as Collateral
The Class B Common Stock and Class A Common Units underlying the calls are pledged to the broker for the transactions, so the position is encumbered rather than freely held.
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No Sales in Past Three Months
Table II reports no securities sold in the prior three months; this is a new covered-call position, not the execution of an earlier noticed sale.
Analysis · CVNA · Trade & Services
Ernest Garcia II, a 10% stockholder selling through his wholly owned ECG II SPE II entity, has filed notice to write 10 million covered call options on Class A shares, pledging the underlying Class B stock and Class A Units as collateral. At the stated aggregate market value of $682.9 million, the position equals roughly 1.4% of the 722.7 million shares outstanding — an order of magnitude larger than the $1-4 million officer 144s that have dotted the last 90 days. This is not an outright sale: a covered call caps upside on those shares in exchange for premium, so Garcia keeps the stock but has effectively agreed to deliver it if the calls are exercised. The pledge is the part that matters — if the shares are already encumbered, a sharp price decline can force selling at the worst time. Against a backdrop of $15.3 million of net insider selling over 90 days and record Q3 results two days ago, this adds a large founder-linked overhang.
How filings like this one have moved
In the 30 days to Oct 31, 2026, 31.4% of the 1757 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, CVNA was trading at $68.30 on NYSE in the Trade & Services sector, with a market capitalization of approximately $75.3B. The 52-week trading range was $54.46 to $97.38. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.