Options Traders Scoop Up Cava Stock After Earnings

CAVA hit an all-time high earlier today

Laura McCandless

Deputy Editor

Feb 27, 2024 at 2:29 PM

cava

Cava Group Inc (NYSE:CAVA) stock is surging, up 11.2% to trade at $56.16 at last glance, following the fast-casual restaurant's better-than-expected fourth-quarter results. Publicly traded since July 2023, today's pop earlier sent CAVA to a fresh record high of $58.22.

The Mediterranean fast-casual restaurant chain opened on June 15 at $42.00, after being priced at $22 the day prior. The shares closed at $43.30 on its debut, and are now up roughly 30% in 2024 already.

Options traders are blasting the equity after the event. So far, 27,000 calls and 16,000 puts have been exchanged, which 6.6 times CAVA's average daily options volume. The weekly 3/1 60-strike call is the most active contract, with new positions being bought to open there.

It's worth noting that short interest represents 9.2% of the stock's available float. It would take shorts roughly five days to cover their bets, at Cava Group stock's average pace of trading.

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!