Cava Group Inc (NYSE:CAVA) is scheduled to report second-quarter earnings today August, 11 after the market closes. Analysts at Zacks Research are expecting earnings of $0.18 per share and $353.31 billion in revenue.
CAVA has closed four of its last eight next-day sessions higher, including a surge of 26.4% in February. Options traders are bracing for a sizeable post-earnings swing of 17.1%, regardless of direction, much larger than the average 9.1% shift over the past eight quarters.
The shares have shed 29% year-over-year and are testing support at the $60 level, which has helped contain a 21.8% pullback this quarter.
Meanwhile, the 13.38 million shares sold short account for 12.19% of CAVA's available float, and it would take short sellers four days to buy back their bets at the stock's average pace of trading.
It's also worth noting that CAVA's Schaeffer's Volatility Scorecard (SVS) comes in at a relatively high 91 out of 100. In other words, the stock has consistently realized higher volatility than its options have priced in over the past 12 months.
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