A Closer Look at Cava Group's Options Market Dynamics

Author: Benzinga Insights | April 30, 2024 04:01pm

Investors with a lot of money to spend have taken a bullish stance on Cava Group (NYSE:CAVA).

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with CAVA, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 22 uncommon options trades for Cava Group.

This isn't normal.

The overall sentiment of these big-money traders is split between 54% bullish and 36%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $123,040, and 20 are calls, for a total amount of $1,371,242.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $45.0 and $100.0 for Cava Group, spanning the last three months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Cava Group options trades today is 739.75 with a total volume of 10,538.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Cava Group's big money trades within a strike price range of $45.0 to $100.0 over the last 30 days.

Cava Group Call and Put Volume: 30-Day Overview

Significant Options Trades Detected:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
CAVA	CALL	SWEEP	BULLISH	05/17/24	$5.3	$5.1	$5.3	$70.00	$490.2K	2.7K	1.8K
CAVA	CALL	SWEEP	BEARISH	05/17/24	$6.2	$6.0	$6.0	$70.00	$120.0K	2.7K	793
CAVA	CALL	TRADE	BULLISH	07/19/24	$29.0	$28.5	$29.0	$45.00	$116.0K	398	0
CAVA	PUT	SWEEP	BEARISH	05/03/24	$1.8	$1.75	$1.8	$72.00	$72.0K	25	487
CAVA	CALL	TRADE	BULLISH	06/21/24	$6.7	$6.4	$6.6	$75.00	$66.0K	120	8

About Cava Group

Cava Group Inc owns and operates a chain of restaurants. It is the category-defining Mediterranean fast-casual restaurant brand, bringing together healthful food and bold, satisfying flavors at scale. The company's dips, spreads, and dressings are centrally produced and sold in grocery stores. The company's operations are conducted as two reportable segments: CAVA and Zoes Kitchen. The company generates the majority of its revenue from the CAVA segment.

Following our analysis of the options activities associated with Cava Group, we pivot to a closer look at the company's own performance.

Present Market Standing of Cava Group

• Currently trading with a volume of 3,031,718, the CAVA's price is up by 2.54%, now at $72.38.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 14 days.

What The Experts Say On Cava Group

In the last month, 5 experts released ratings on this stock with an average target price of $69.2.

• Maintaining their stance, an analyst from TD Cowen continues to hold a Buy rating for Cava Group, targeting a price of $73.
• Consistent in their evaluation, an analyst from Morgan Stanley keeps a Overweight rating on Cava Group with a target price of $68.
• An analyst from Wedbush persists with their Outperform rating on Cava Group, maintaining a target price of $74.
• In a cautious move, an analyst from Barclays downgraded its rating to Equal-Weight, setting a price target of $58.
• Reflecting concerns, an analyst from TD Cowen lowers its rating to Buy with a new price target of $73.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Cava Group options trades with real-time alerts from Benzinga Pro.

Posted In: CAVA