Covered Calls Position Established in Cava Group Inc.

This morning, I established an initial small Covered Calls position in Cava Group Inc. (ticker CAVA) when my buy/write net debit limit order was executed at a price of $62.56.  Two hundred shares were purchased at $67.57 and 2 August 29th, 2025 $64.00 Call options were sold at $5.01 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 $1.44 per share [$5.01 Call options premium - ($67.57 stock purchase price - $64.00 strike price)].  The probability that the Call option will be above the $64.00 strike price on the August 29th options expiration date when this Covered Calls position was established was 69.8%.  As preferred, their next quarterly earnings report on November 11th is after the August 29th options expiration date.

Cava is the leading Mediterranean fast-casual restaurant brand.  With a current $8.2 billion market cap, it currently has about 400 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. 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.  The stock price has declined sharply since its earnings report two days ago, primarily based on the substantial decline in same-store-sales to +2.1%.  I listened to the earnings conference call presentation followed by the analysts' question/answer session.  I believe the 20.1% stock price decline from $84.54 prior to the earnings announcement to $67.57 this morning has been a significant overreaction; so I established this Covered Calls position.    

As detailed below, a potential return-on-investment result is +2.3% absolute return-on-investment (equivalent to +55.7% annualized return-on-investment for the next 15 days) if Cava's share price is in-the-money (i.e. above the $64.00 strike price) and the stock is therefore assigned on its August 29th, 2025 options expiration date. 

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

The net debit buy/write limit order was executed as follows:
8/14/2025 Bought 200 shares of Cava Group Inc. stock @ $67.57 per share.  
8/14/2025 Sold 2 CAVA August 29th, 2025 $64.00 Call options @ $5.01 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Call was 51.2 when this position was established.  

A possible overall performance result (including commissions) if this position is assigned on its 8/29/2025 options expiration date is as follows:
Cava Covered Calls Net Investment: $12,513.34
= ($67.57 - $5.01) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,000.66
= ($5.01 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Cava stock is above the $64.00 strike price at the August 29th, 2025 options expiration date): -$714.00
= ($64.00 strike price - $67.57 stock purchase price) * 200 shares

Total Net Profit Potential (If CAVA is in-the-money and therefore assigned at the $64.00 strike price on its 8/29/2025 options expiration date): +$286.66
= (+$1,000.66 options income + $0.00 dividend income - $714.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.3%
= +$286.66/$12,513.34
Potential Equivalent Annualized-Return-on-Investment: +55.7%
= (+$286.66/$12,513.34) * (365/15 days)