A strong earnings report and upgraded forward guidance typically yield unusual options activity – that’s usually how this works. However, for fast-casual restaurant chain Cava Group (CAVA), betting on continued upside seems risky. Yes, CAVA stock deserves the praise that it got. But after popping nearly 20% in one day, how much more can this equity give?
It’s a valid question. Market data shows that CAVA stock peaked on Friday early afternoon. Since then, it gradually slipped from an intraday high of $125.87 to its closing price of $122. During the afterhours session, it managed to move up but by only 0.32%. It’s quite possible that the market will respond positively to Cava’s strong fiscal second-quarter earnings report. Still, a double-digit gain seems like it’s off the table.
