CAVA Group Inc Introduces New Options with December Expiration

Investors in CAVA Group Inc (Symbol: CAVA) will find new options available as of today, expiring on December 19th. With 255 days until expiration, these new contracts offer sellers of puts or calls a chance to secure higher premiums than those available in shorter-duration contracts. At Stock Options Channel, our YieldBoost formula has analyzed CAVA’s options chain and highlighted one put and one call contract of particular interest.

Put Contract Analysis

The put contract at the $80.00 strike price currently has a bid of $13.25. If an investor opts to sell-to-open this contract, they commit to purchasing CAVA shares at $80.00 while also collecting the premium. This arrangement effectively reduces the cost basis of the shares to $66.75 (excluding broker commissions). For investors looking to buy CAVA shares, this may present an attractive alternative to paying the current market price of $83.69 per share.

Given that the $80.00 strike price approximates a 4% discount to CAVA’s present trading price, there is a chance that the put contract could expire worthless, with analytical data suggesting a 66% probability of this outcome. Stock Options Channel will monitor these odds over time, providing updates on our website. If the contract does expire worthless, the premium would yield a 16.56% return on the cash commitment, translating to an annualized return of 23.70%—a metric we refer to as the YieldBoost.

Trails and Historical Context

Below is a chart illustrating CAVA Group Inc’s trailing twelve-month trading history, with the $80.00 strike indicated in green:

Call Contract Insights

On the calls side, the contract at the $90.00 strike price has a current bid of $15.05. If an investor buys shares of CAVA at the current price of $83.69 and subsequently sells-to-open this call contract as a “covered call,” they are agreeing to sell the stock at $90.00. With the additional premium collected, this generates a total return of 25.52% if the shares are called away by the December 19th expiration (before broker commissions). However, should CAVA shares experience significant growth, potential upside may remain untapped. Therefore, examining CAVA’s twelve-month trading history and analyzing business fundamentals is advisable.

Below is a chart showing the trailing twelve months of trading history for CAVA Group Inc, with the $90.00 strike highlighted in red:

The $90.00 strike represents an approximate 8% premium over the current trading price, creating the possibility for the covered call contract to expire worthless. In this scenario, the investor would retain both their shares and the collected premium. Current analysis indicates a 43% chance of this occurring. To track these fluctuations and the call contract’s trading history, Stock Options Channel will provide ongoing updates on our website. If the covered call contract expires worthless, the investor could realize an additional 17.98% return, or an annualized boost of 25.74%, referred to as YieldBoost.

The implied volatility for the put contract is at 65%, while the call contract sits at 63%. In contrast, we calculate the trailing twelve-month volatility, based on the last 251 trading day closing values and today’s price of $83.69, to be 57%. For further options contract ideas, visit StockOptionsChannel.com.

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also see:

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• HALO Historical Stock Prices

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.