10% Owner Ernest C. Garcia II Writes $82.5M in Covered Call Options on Carvana Co. ($CVNA)

Insider Filing Analysis: Carvana Co. ($CVNA)

Overview

On November 3, 2026, Ernest C. Garcia II, a 10% owner of Carvana Co., filed a Form 4 disclosing a major derivative transaction executed on October 30, 2026, through his wholly owned entity, ECG II SPE II, LLC ("E-SPE II").

Key Transaction Details

• Security: Covered Call Option (Obligation to Sell Class A Common Stock)
• Transaction Code: S (Open market or private sale of securities/derivatives)
• Contracts/Underlying Shares: 10,000,000 options (referencing 10,000,000 shares of Class A Common Stock)
• Premium Received: $8.25 per share / option
• Total Gross Premium: $82,500,000.00
• Strike Price: $90.00
• Expiration Date: November 19, 2027 (European-style)
• Collateral / Pledge: E-SPE II pledged 10,000,000 shares of Class B common stock and 12,500,000 Carvana Group, LLC Class A units to secure its obligations under the transaction.

Significance & Market Implications

• Monetization without Immediate Disposition: By selling European-style covered call options with an expiration nearly one year out, the insider generates immediate liquidity of $82.5 million while retaining voting rights and potential equity upside up to the $90.00 strike price.
• Potential Overhang: If the shares trade above $90.00 upon expiration in November 2027, the underlying 10,000,000 shares will effectively be called away, effectively locking in an exit price of $98.25 (strike + premium) for that block of shares.
• Significance Level: High, given the scale ($82.5M in premium, 10M underlying shares) and the involvement of the company's major controlling shareholder.