Covered Call Position Established in Cava Group Inc.

This morning, I established an initial small Covered Call position in Cava Group Inc. (ticker CAVA) when my buy/write net debit limit order was executed at a price of $81.70.  One hundred shares were purchased at $89.34 and 1 August 8th, 2025 $84.00 Call option was sold at $7.64 per share.  So, the maximum potential time value profit if the stock is in-the-money and therefore closed out by assignment on the options expiration date is $2.30 per share [$7.64 Call option premium - ($89.34 stock purchase price - $84.00 strike price)].  The probability that the Call option will be above the $84.00 strike price on the August 8th options expiration date when this Covered Call position was established was 65.8%.  As preferred, their next quarterly earnings report on August 22nd is after the August 8th options expiration date.

Cava is the leading Mediterranean fast-casual restaurant brand.  With a current $10 billion market cap, it currently has about 350 locations in the U.S. and is growing rapidly with about 60 additional restaurants added each year.  The co-founder is also the CEO and the first store was opened in 2011 and Cava's IPO occurred two years ago in 2023.  Thirty-eight percent of sales originate from their digital app and sixty-two percent is in-person at their restaurant locations. 

As detailed below, a potential return-on-investment result is +2.8% absolute return-on-investment (equivalent to +60.3% annualized return-on-investment for the next 17 days) if Cava's share price is in-the-money (i.e. above the $84.00 strike price) and the stock is therefore assigned on its August 8th, 2025 options expiration date. 

Cava Group Inc. (CAVA) -- New Covered Call Position

The net debit buy/write limit order was executed as follows:
7/22/2025 Bought 100 shares of Cava Group Inc. stock @ $89.34 per share.  
7/22/2025 Sold 1 CAVA August 8th, 2025 $84.00 Call option @ $7.64 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Call was high at 56.2 when this position was established.  

A possible overall performance result (including commissions) if this position is assigned on its 8/8/2025 options expiration date is as follows:
Cava Covered Call Net Investment: $8,170.67
= ($89.34 - $7.64) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$763.33
= ($7.64 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Cava stock is above the $84.00 strike price at the August 8th, 2025 options expiration date): -$534.00
= ($84.00 strike price - $89.34 stock purchase price) * 100 shares

Total Net Profit Potential (If CAVA is in-the-money and therefore assigned at the $84.00 strike price on its 8/8/2025 options expiration date): +$229.33
= (+$763.33 option income + $0.00 dividend income - $534.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.8%
= +$229.33/$8,170.67
Potential Equivalent Annualized-Return-on-Investment: +60.3%
= (+$229.33/$8,170.67) * (365/17 days)