This Consumer Stock is Already in a Bear Market. Smart Money Sees 20% More Downside Ahead.

Group 1 - Cava Group (CAVA) has significantly underperformed in 2023, with a year-to-date decline of 60%, while major market benchmarks have reached new record highs [1] - The stock price has dropped over 28% in the past month, driven by concerns about a potential consumer crunch affecting the company's $15 salad offerings [1] - There is an expectation of further downside for CAVA, with smart money indicating a potential additional drop of around 10 points, or 20%, by January 2024 based on unusual options activity [2][3] Group 2 - Heavy put volume activity for CAVA's January 2026 35-strike puts suggests a bearish sentiment, indicating that investors may be rolling down from long put positions set to expire soon [2] - The put/call volume ratio for CAVA has surged to 4.33, surpassing the previous high recorded in October, reflecting increased bearish sentiment among traders [3]