CAVA Earnings Options Play (Aug 12, 2025⚠️ CAVA Earnings Options Play (Aug 12, 2025)**
**Bias:** 🐻 Moderate Bearish (65% Confidence) — Mixed fundamentals + bearish technicals
📊 **Fundamentals:**
* Revenue growth strong (+28.1% TTM) but EPS expected to plunge -58.3%
* Margins tight; cost pressures looming
* Forward P/E sky-high at 168.7 — pricey expectations
* Sector exposed to consumer spending risks
📈 **Technicals:**
* Trading below 50 & 200 DMA → bearish momentum
* RSI near oversold at 40.08 — possible short-term bounce but downtrend intact
* Key support: \$82.00 — breach signals more downside
💡 **Options Flow:**
* Heavy open interest on \$80 puts and \$85 calls — mixed sentiment but bearish tilt
* IV Rank 60% with expected move \~ \$5.00 → priced for volatility
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### 💣 Trade Setup:
* **Instrument:** CAVA
* **Trade:** Buy PUT
* **Strike:** \$82.00
* **Entry Price:** \$4.05 (bid side, conservative)
* **Expiry:** Aug 15, 2025
* **Profit Target:** \$12.15 (+200%)
* **Stop Loss:** \$2.025 (50% premium decay)
* **Size:** 2 contracts
* **Entry Timing:** Pre-earnings close
* **Earnings Date:** Aug 14, AMC
⚠️ **Risk:** Close position within 2 hours post-earnings if no target hit
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**TL;DR:**
Price action and fundamentals suggest downside risk post-earnings. Buying puts at \$82 strike targets a big move down, but manage your risk tightly around earnings volatility.
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