Ernest C. Garcia II, a director and 10% owner of Carvana Co. (NYSE:CVNA), filed a Form 4 on November 3, 2026, disclosing that his wholly owned entity ECG II SPE II, LLC sold 10,000,000 covered call options on Carvana Class A common stock on October 30, 2026.

Key Highlights

  • Transaction date: October 30, 2026, through ECG II SPE II, LLC, an entity wholly owned and controlled by Garcia.
  • Options sold: 10,000,000 European-style covered call options, each referencing one share of Class A common stock, sold to an unaffiliated third-party purchaser.
  • Strike price: $90.00 per option, with an expiration date of November 19, 2027.
  • Premium received: $8.25 per option, to be received by ECG II SPE II, LLC in exchange for selling the options.
  • Pledged collateral: 10,000,000 shares of Class B common stock and 12,500,000 units of Carvana Group, LLC Class A units pledged to secure obligations under the transaction.
  • Voting rights retained: During the pledge term, ECG II SPE II, LLC retains the right to vote the pledged shares and retains investment and dispositive power over them, subject to pledge terms.

ECG II SPE II Enters Covered Call Transaction on 10 Million Carvana Shares

According to the filing, ECG II SPE II, LLC ("E-SPE II"), an entity wholly owned and controlled by Ernest C. Garcia II, entered into a European-style covered call option transaction on October 30, 2026, with an unaffiliated third-party purchaser. Under the transaction, E-SPE II sold 10,000,000 covered call options at an exercise price of $90.00 per share, each referencing one share of Carvana Co. Class A common stock. The options expire on November 19, 2027. In exchange for selling these options, the filing states that E-SPE II will receive a cash premium of $8.25 per option.

The filing describes the covered call option as representing "the option holder's right to purchase, and the option seller's obligation to sell, the underlying shares at the specified strike price." The transaction code reported is "S" for the derivative security. Following the transaction, 10,000,000 covered call options are reported as beneficially owned indirectly through E-SPE II.

To secure its obligations under the transaction, E-SPE II pledged 10,000,000 shares of the issuer's Class B common stock and 12,500,000 units of Carvana Group, LLC Class A units, collectively referred to in the filing as the "Pledged Shares." The filing states that during the term of the pledge, E-SPE II retains both the right to vote the Pledged Shares and investment and dispositive power over them, subject to the terms of the pledge arrangements. Garcia is identified in the filing as a director and 10% owner of Carvana Co.

What Was Disclosed

The Form 4 filed November 3, 2026, by Ernest C. Garcia II discloses that his controlled entity ECG II SPE II, LLC sold 10,000,000 covered call options on Carvana Class A common stock at a $90.00 strike price, receiving $8.25 per option, with 10,000,000 Class B shares and 12,500,000 LLC units pledged as collateral.