Shares of CAVA Group Inc (NYSE:CAVA) are spiraling this morning, despite beating second-quarter earnings estimates with $0.16 per share. Revenue came in at $280.62 million, missing expectations. What's more, net income for the period declined from previous quarters, as same-store sales came in below Wall Street's estimates.
At last check, the stock was down 15.3% to trade at $71.61, on pace for its worst session ever. Shares tumbled to $65.70 earlier today, their lowest level since April 2024, and are down 38.7% this year.
In the options pits, activity is running at 17 times the usual intraday amount, with 69,000 calls and 96,000 puts exchanged so far. The August 65 put is the most popular contract, followed by the October 55 put, with new positions opening at both.
This bearish sentiment has only continued to build over the past two weeks, as the stock's 10-day put/call volume ratio at the International Securities (ISE), Cboe Options (CBOE) and NASDAQ OMX PHLX (PHLX) sits higher than 82% of annual readings. Plus, short interest represents 11.6% of the stock's available float.
