Carvana Plummets 2.09% Amid CEO Share Sale and Analyst Divergence: What’s Brewing in the E-Commerce Auto Sector?

Summary
• Carvana’s stock tumbles 2.09% to $362.43, hitting an intraday low of $356.48 amid CEO Ernest Garcia’s $3.65 million share sale.
• Analysts remain split: Citi and JPMorgan raise price targets to $490–$415, while Evercore ISI maintains a Hold rating.
• The stock’s 52-week range of $124.39–$413.33 highlights its volatile trajectory in the e-commerce auto retail sector.
• With a dynamic P/E of 97.74 and a 0.72% turnover rate, CVNA’s sharp intraday decline signals a pivotal moment for investors. The recent expansion of same-day delivery to Seattle and sector-wide tariff-driven shifts add layers to its near-term outlook.

CEO Share Sale and Analyst Divergence Fuel Volatility
Carvana’s intraday selloff is directly tied to CEO Ernest C. Garcia III’s $3.65 million share sale under a Rule 10b5-1 trading plan, executed at prices between $360.38 and $370.91. This move, coupled with mixed analyst ratings—Citi and JPMorgan raising price targets to $490 and $415, respectively, while Evercore ISI maintains a cautious Hold—has created a tug-of-war between bullish and bearish sentiment. The stock’s 2.09% drop also reflects broader sector jitters, as the automotive retail sector grapples with Trump-era tariffs and shifting consumer preferences toward e-commerce platforms.

Automotive Retail Sector Volatility: Autonation Holds Steady Amid CVNA’s Slide
While Carvana’s stock tumbles, sector leader Autonation (AN) remains resilient, with an intraday price change of -0.01%. This divergence underscores CVNA’s unique exposure to e-commerce dynamics and CEO actions. The broader sector, however, faces headwinds from Trump-era tariffs and EV rebate uncertainty, as highlighted in Cox Automotive’s market insights. Carvana’s expansion of same-day delivery to Seattle—a move praised by customers—positions it to capture market share but also intensifies competition with traditional dealerships like Autonation.

Options Playbook: Capitalizing on CVNA’s Volatility with Strategic Leverage
• MACD: 6.57 (above signal line 5.63), RSI: 62.63 (neutral), Bollinger Bands: $332.12–$380.60 (current price near lower band).
• 30D MA: $353.87 (above 200D MA of $270.93), suggesting a bullish trend.
• Key Support/Resistance: 340.098–344.65 (200D) and 344.03–345.31 (30D).
• Leveraged ETF: Not available; focus on options.

Top Options Picks:
• CVNA20250912C370 (Call, $370 strike, 9/12 expiry):
- IV: 47.23% (moderate), Leverage Ratio: 49.56%, Delta: 0.4147, Theta: -1.3657, Gamma: 0.0153, Turnover: 519,017.
- Payoff at 5% Downside (344.30): $0 (strike above current price).
- Why It Stands Out: High leverage and liquidity make it ideal for short-term bullish bets, with moderate IV ensuring cost efficiency.
• CVNA20250912C375 (Call, $375 strike, 9/12 expiry):
- IV: 44.56% (moderate), Leverage Ratio: 71.93%, Delta: 0.3314, Theta: -1.1446, Gamma: 0.0151, Turnover: 97,880.
- Payoff at 5% Downside (344.30): $0 (strike above current price).
- Why It Stands Out: Aggressive bulls may target this for a breakout above $375, leveraging high leverage and strong gamma for price sensitivity.

Trading Setup: With RSI near neutral and MACD bullish, short-term traders should watch the $344.098 support level. A break below triggers a shift to defensive puts like CVNA20250912P345 (IV: 50.32%, turnover: 38,717). Aggressive bulls may consider CVNA20250912C370 into a bounce above $370.

Backtest Carvana Stock Performance

Act Now: CVNA’s Volatility Presents High-Reward Options Opportunities
Carvana’s sharp intraday decline, fueled by CEO share sales and analyst divergence, creates a high-volatility environment ripe for strategic options plays. The stock’s technicals—bullish MACD, neutral RSI, and key support near $344—suggest a potential rebound if buyers step in. However, the sector’s sensitivity to tariffs and EV rebates means sustained momentum is far from guaranteed. Investors should monitor Autonation’s -0.01% move for sector cues and watch for a break below $344.098 to pivot to defensive positions. For now, the CVNA20250912C370 and CVNA20250912C375 options offer compelling leverage for those betting on a near-term reversal.